Exclusive sources told our source that banks are continuing to operate until late at night to ensure a smooth and faster process of loading personal-purpose cards.
Banks are currently sending Excel files to exchange companies for approval and processing the loading of personal-purpose cards.
The Central Bank of Libya confirmed exclusively to our source that banks and exchange companies have begun completing the sale of personal-purpose foreign currency to customers, and that procedures are progressing smoothly.
It added that authorization has been granted to purchase all reserved amounts exceeding $600 million, while the booking process for new requests continues as normal.
Banker Misbah Al-Akkari stated that the rise in the dollar was temporary and that it is now steadily declining, adding that the real assessment of this drop will become clear through this week.
Al-Akkari explained that the Central Bank of Libya has found itself caught between two competing governments, each requiring expenditures including salaries, subsidies, operational expenses, and development spending. He noted that both governments are demanding funds without fully committing to collecting sovereign revenues and depositing them into the Central Bank for proper allocation, which has led to very weak sovereign revenues.
He added that revenues from taxes, customs, domestic oil sales, telecommunications, and even key sovereign oil revenues have seen a significant decline, despite improved production and a rise in global oil prices to حوالي $71 per barrel.
Al-Akkari pointed out that it is illogical for oil revenues to reach about $2 billion in February 2025, then drop to $800 million in February 2026, at a time when governments are requesting expenditures estimated at 210 billion dinars, while total revenues do not exceed 130 billion dinars.
He stressed that the Central Bank of Libya is currently trying to implement solutions within the available capabilities, noting that the treatment may sometimes be painful but aims to avoid a shock that some may not anticipate, and that the results will take time to appear.
He added that Libyan citizens booked $668 million through the personal purposes foreign currency system last week, and their cards will be loaded starting tomorrow, God willing. He also noted that all approved letters of credit that have been reviewed are being continuously executed, meaning large amounts of foreign currency are being injected into the market to increase supply and meet demand.
Al-Akkari stated that more than 330,000 Libyan citizens have registered in the system, emphasizing that reforms are ongoing but are being carried out by only one party in the country—the Central Bank of Libya—while questioning the role of other stakeholders in the reform and oversight process.
He said that the Central Bank of Libya holds foreign currency assets exceeding $100 billion, while the total foreign assets of the Libyan state surpass $150 billion. He questioned how a country with such wealth, resources, and large oil reserves could resort to borrowing from the World Bank, describing it as one of the most controversial issues among Libyans.
He added that these reserves cannot be recklessly used during a period of division or spent on consumption, stressing that Libya has sufficient resources to move toward stability, achieve urban development, and ensure a decent standard of living for its citizens—provided there is genuine political will to build the state, end divisions, unify governments, properly utilize resources, and hold corrupt individuals accountable.
The Central Bank of Libya announced exclusively to our source that it has begun implementing a liquidity distribution plan to its issuing departments across various regions, in preparation for supplying bank branches.
It confirmed that available liquidity amounts to 5 billion dinars, in addition to shipments arriving successively from abroad to meet the needs of Eid al-Fitr, the payment of February salaries, and family (children and spouse) allowances. It also clarified that the withdrawal limit will be set at 3,000 dinars for anyone holding a bank account.
The Bank explained that once banks and exchange companies are fully prepared, it will begin tomorrow, Sunday, selling foreign currency allocations for personal purposes worth $600 million, with immediate card loading on the same day.
It also confirmed the continuation of granting new approvals for letters of credit and selling their values directly to banks, in addition to settling letters of credit whose documents have been traded at an exchange rate of 6.30 dinars per dollar.
Our source has learned that the Central Bank held an important meeting today with exchange companies, informing them that they can now allocate (reserve/use) up to 100% of their balances instead of the previous 70%.
This comes as part of implementing more impactful measures targeting the parallel market, aimed at narrowing the gap between the parallel market rate and the official exchange rate. These measures are set to begin next Sunday and include increasing and accelerating the coverage of requests for letters of credit, bank cards, ATMs, and cash dollars, alongside a decline in the dollar’s value in the parallel market.
Libyan businessman Husni Bey wrote in an article:
The Central Bank of Libya cannot impose fees without an official decision signed by the Speaker of Parliament, Aguila Saleh — 100,000%. In general, Libya’s economic and financial crisis is behind the collapse of the dinar.
Libya’s current daily production stands at 1.35 million barrels of oil and 2.4 billion cubic feet of gas, covering about 93% of public spending after deducting the foreign partner’s share. This leaves a net total of 88% from production in the form of shares, royalties, rights, and taxes.
Total public spending: ≈ 270 billion LYD
Net spending after fuel deduction: 172 billion LYD
To cover this spending, the economy needs to sell foreign currency equivalent to at least 160 billion LYD. Accordingly, the Central Bank is compelled to sell the dollar at an exchange rate that allows financing of public spending of no less than this amount.
1. Uncontrolled Public Spending
Spending without a disciplined budget, exceeding revenues and financed through deficit spending → resulting in continuous inflation and a decline in the dinar’s purchasing power.
2. Monetary Financing & Exchange Rate Gaps
Leads to:
3. Fuel Gap (Most Dangerous)
Result: Smuggling, theft, distorted subsidies — ongoing for over 50 years.
4. Price Gaps as Hidden Taxes
Whether in:
These act as unofficial taxes paid by all citizens through higher prices and reduced real income.
They do not go to the Central Bank or government but are effectively collected from 100% of Libyans, benefiting only a few through speculation.
5. Source of Dollar Gap
At least 30% comes from trading the $2,000 personal allowance rights, turning them into speculative tools.
6. Impact of Recent Decisions
Imposing a 12% fee on the $2,000 personal allowance (with exemption for $500 family allowance) increased the price gap instead of reducing it.
7. Letters of Credit as a Speculation Tool
Due to a guaranteed price gap (~30%), especially in personal imports, making them easy to obtain and resell.
8. Cash vs Cheque Gap
Mainly due to restructuring the monetary base:
Result: Cash shortages, price gaps, and speculation on the dinar itself.
Price gaps (dollar – dinar – fuel) = hidden taxes
Do we agree that the roots of inflation and price gaps are:
How can these “hidden taxes” be formally collected through:
And then fairly redistributed to all citizens — through cash transfers, services, or reduced living costs — to compensate for the losses people currently bear without return?
The Central Bank of Libya told our source exclusively that it continues to process reservations for personal foreign currency allocations, with total reservations reaching approximately $665 million as of today, Wednesday. The Bank is set to begin selling these amounts to eligible beneficiaries starting next Sunday.
The Bank also confirmed that it is continuing to grant approvals for opening letters of credit, which have exceeded $1.7 billion in total value. It further noted that execution and sales to commercial banks have reached $600 million for new letters of credit.
In addition, the Central Bank has begun implementing the financing of amounts to correspondent banks of commercial banks for letters of credit whose documents have already been processed, at an exchange rate of 6.30 LYD per USD.
The Central Bank of Libya confirmed exclusively to our source that it will continue performing its duties to maintain monetary stability and the value of the dinar, despite pressures resulting from rising public spending and declining revenues.
The bank explained that it is ready to inject approximately $1.6 billion to cover demand for foreign currency and defend the value of the dinar amid increasing demand.
It also announced the resumption of the personal purposes system, with sales set to begin next Sunday for bookings made خلال this week, which are expected to exceed $500 million.
The bank noted that it has already started selling foreign currency for letters of credit allocated for importing goods, amounting to $500 million, with the process ongoing. It also aims to sell around $600 million for letters of credit through the coming week.
The bank further stated that it has begun settling the value of letters of credit whose documents have not yet been processed and were opened during 2025, at the exchange rates approved at the time of issuance, totaling $4 billion at a rate of 6.30 dinars per dollar.
Additionally, it confirmed its readiness to provide liquidity estimated at around 5 billion dinars to cover February salaries, the wife and children allowance, as well as Eid al-Fitr requirements in the coming days.
The Central Bank of Libya told our source exclusively that personal-purpose reservations reached $233 million as of yesterday, Sunday, February 22, noting that the system is operating continuously.
The Bank added that it will begin transferring these amounts to their beneficiaries. It also granted approvals for letters of credit during February totaling $1.5 billion, and has started today covering the amounts due to commercial banks.
The Central Bank of Libya exclusively confirmed to our source that the personal-purpose system is ongoing.
The bank added that the system is operating today, the situation is normal, and household heads will be treated separately.
The Central Bank of Libya exclusively confirmed to our source its decision to grant a cash allowance to household heads, as well as cover medical and education expenses at the official exchange rate of $6.3.
After completing certain procedures, the grant will be available through all payment methods: card top-ups, account transfers, and cash purchases. The value allocated for each family member will be $400.
The Central Bank of Libya exclusively revealed to our source that it is studying the possibility of granting financial allocations to heads of households, with an additional margin for personal purposes and currency exchange, in order to ensure that every citizen benefits. The matter is currently under review, and the allocations would be provided in cash.
It also stated that a circular will be issued allowing exchange companies and banks to carry out direct transfers.
Our source has exclusively learned that, based on a meeting held by the Central Bank of Libya with a number of traders, it was decided to cancel the price set by the Ministry of Economy for the commodity of cooking oil, while emphasizing the need to monitor market conditions and regulate supply and demand during the coming period.
It also indicated that large quantities of goods have entered the local market, whether through domestic production or via imports from abroad.
Our source has obtained several correspondences from the Governor of the Central Bank of Libya, Naji Issa, addressed to the Internal Security Agency, the Municipal Guard, and the Ministry of Interior, calling for the closure of exchange offices and companies not licensed by the Central Bank and for the punishment of anyone dealing in foreign currency outside the official sector.
He also stated that the relevant authorities should take the necessary measures to monitor the movement of funds in Libyan dinars and verify their legality and sources, in accordance with applicable laws and regulations, as well as anti-money laundering and counter-terrorism financing controls and procedures.
The Governor also addressed the Minister of Finance of the Government of National Unity, stressing the need to include the data of all entities in the “Instant Salary” system, otherwise salary disbursements will be restricted exclusively to the system.
The Central Bank noted that delays by some entities in submitting and reconciling their employees’ data without justification may increase cases of dual employment and exacerbate the rise in spending under the salaries budget item.
The Governor concluded his correspondence by expressing hope that urgent measures would be taken to oblige entities that have not yet submitted their employees’ data to expedite doing so and ensure its reconciliation. He warned that failure to submit this data will lead the Central Bank of Libya to limit its consideration of salary disbursements to those processed through the “Instant Salary” system only.
Our source has exclusively obtained correspondence from the Central Bank of Libya addressed to the exchange companies accredited by it, in which it demands that they promptly submit their data.
This comes after the Bank observed delays in submitting their required data and information. It warned that the strictest penalties will be applied against them, including the withdrawal of their licenses, in the event of non-compliance with its correspondence.
