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Tag: central bank

Exclusive: Central Bank Sends 60 Million to Its Benghazi Branch

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The Central Bank of Libya has exclusively revealed to our source that it has dispatched a new cash shipment today from Mitiga Airport in Tripoli to Benina Airport in Benghazi. The shipment, designated for the bank’s Benghazi branch, carries a total of 60 million dinars.

The Central Bank will continue sending cash shipments regularly until all Libyan cities receive the necessary liquidity, in accordance with its planned strategy and under the directives of Governor Naji Mohammed Issa and his deputy.

Abu Mahara Writes: “Central Bank Data on Revenue and Public Expenditure (Incomplete Transparency)”

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Lawyer Ahmed Ali Abu Mahara wrote an article titled: Central Bank Data on Revenue and Public Expenditure (Incomplete Transparency):

There is no doubt that the data issued by the Central Bank of Libya on state revenues and expenditures is an important indicator for understanding the country’s financial situation. Through these reports, one can assess the total revenues generated from various sources such as oil, gas, and taxes, as well as how these revenues are distributed across different sectors. Additionally, expenditure data provides a clear picture of how the government manages its financial resources.

However, when examining the overall legal framework, it becomes evident that revenue collection and expenditure management fall exclusively under the jurisdiction of the Ministry of Finance. This ministry oversees the state’s revenues and expenditures, monitors its income, and manages all government accounts with the Central Bank to ensure proper deposit and spending procedures. This raises a critical question: Who is legally authorized to issue reports on revenue and expenditure data? Is it the Central Bank or the Ministry of Finance? This article aims to clarify the answer.

Libya’s public revenues vary in nature, including oil revenues, taxes, and fees. Oil revenues are the primary source of funding for public expenditures. These revenues are collected through agencies and institutions responsible for managing state income, which is then deposited into the Ministry of Finance’s accounts at the Central Bank of Libya.

As for public expenditures, they involve financial disbursements that the state owes to rightful recipients, such as salaries and similar payments. These expenditures occur through authorizations issued by the Ministry of Finance to the Central Bank, instructing it to release the required funds. All these transactions follow the financial regulations governing such operations.

According to Libya’s legal framework, the Central Bank acts as an agent of the government in all financial transactions. Public revenues are deposited in the Central Bank under the name of the public treasury and placed in the Ministry of Finance’s accounts. These accounts are then used to settle the government’s financial obligations. This process is legally known as treasury operations. The public treasury serves as the link between revenue collection and expenditure, where all types of state income are accumulated, and from which the necessary funds are disbursed based on spending orders issued by the Ministry of Finance to the Central Bank, which then executes the payments.

This legal requirement makes it clear that the Ministry of Finance is the entity responsible for issuing financial reports since it has precise knowledge of both the amounts spent and the revenues collected in the state treasury.

By law, the Ministry of Finance is mandated to produce financial reports compiled from the aggregated reports it receives from various institutions. Article 25 of the Budget, Accounts, and Warehouses Regulations states:

“Assistant financial controllers must submit a monthly report to the financial controller, approved by the head of the respective authority, detailing the revenues collected and expenditures incurred…”

“The financial controller must prepare a monthly report on the ministry’s operations and submit it to the Ministry of Finance after obtaining approval from the Deputy Minister, no later than the end of the following month.”

If the Ministry of Finance does not produce any financial reports—its last published report on its website dates back to 2022—and there are no accounting reconciliations between the Ministry of Finance and the Central Bank of Libya to verify the actual figures for revenue and expenditure, this lack of reconciliation results in discrepancies between the Central Bank’s data and the records held by revenue-generating institutions such as the National Oil Corporation, the Tax Authority, and the Customs Authority.

Such reconciliation between the Ministry of Finance and the Central Bank is crucial for understanding the country’s true financial situation. Without it, the Central Bank’s unilateral release of these reports raises serious questions about the accuracy of the figures presented.

Exclusive: Central Bank of Libya Sends Cash Shipment to Banks in Kufra

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The Central Bank of Libya revealed exclusively to our source that it has dispatched a new cash shipment today from Mitiga Airport in Tripoli to the city of Kufra. The shipment includes 8 million LYD for Jumhouria Bank, 6 million LYD for North Africa Bank, and 13 million LYD for Wahda Bank.

The bank confirmed that it will continue sending cash shipments to ensure liquidity reaches all Libyan cities, as part of its planned strategy to provide cash flow, following the directives of Governor Nagy Mohammed Issa and his deputy.

Statista: Central Bank of Libya Ranks First with $81 Billion, a Crucial Figure for Libya’s Economic Future

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The Business Insider Africa website highlighted the crucial role that African central banks play in shaping the economic landscape of their respective countries and the continent as a whole.

These institutions are responsible for formulating and implementing monetary policies, managing inflation, stabilizing currencies, and fostering economic growth.

According to Statista, in 2024, the Central Bank of Libya and the Bank of Algeria ranked first, each managing $81 billion in assets.

The report further noted that the South African Reserve Bank ranked third in the region, managing $64 billion in assets.

Leading African central banks in 2024 in terms of assets under management (AUM) include several North African countries, with Algeria and Libya at the forefront, leveraging their oil and gas reserves for economic stability.

Exclusive: Al-Shahoumi to Sada – The Economic Situation is Alarming, and Here’s Why

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Economic expert Suleiman Al-Shahoumi commented exclusively to our source on the latest Central Bank report, stating: “Every time the Central Bank releases a report, it reminds us of the difficult economic situation and the confusion in Libya’s economic policies.”

Al-Shahoumi continued: “There is an unusual level of contradiction and instability between monetary and fiscal policies. The reality is bleak, and deficits have become a defining characteristic of Libya’s economy, whether in foreign currency expenditures or government spending.”

He added: “Libya’s economy is driven by two forces—the Central Bank’s money creation and the government’s spending. These forces have created a dangerously unstable situation, leading to an escalating public debt crisis. The government’s unchecked spending, combined with monetary expansion, is fueling this financial instability without a proper understanding of Libya’s economic realities and needs.”

Al-Shahoumi emphasized: “With multiple governments and entities managing the economy, confusion is inevitable due to conflicting interests, priorities, and responsibilities. If this situation persists, its consequences will be disastrous. A unified and comprehensive economic policy is essential to realign the country’s financial direction, particularly in monetary policy.”

He concluded: “What’s happening now reflects a deep-rooted flaw that appears beyond control, as long as each authority operates independently without coordination, a structured fiscal framework, or a clear monetary strategy from the Central Bank. This recklessness and lack of oversight could have severe repercussions.”

Exclusive: Abu Al-Qasem to Sada: The Central Bank Will Be Forced to Devalue the Dinar Again if the Demand for Foreign Currency Increases and Oil Revenues Continue to Decline

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Dr. Abu Bakr Abu Al-Qasem, Head of the Libyan Academic Accounting Department, exclusively told our source that the Central Bank of Libya’s report from January 1 to February 28, 2025, revealed that foreign currency sources reached 3.6 billion USD, while foreign currency usage exceeded 6 billion USD, resulting in a deficit of 2.5 billion USD in less than two months.

He continued, saying that this high demand for foreign currency poses a future risk to the country’s situation if the demand continues at this rate. He raised the important and puzzling question of what is fueling this excessive demand for foreign currency.

He added, “Firstly, we believe that the excessive and inflated spending by both governments in the East and West, without a unified and approved budget, is one of the main factors fueling this excessive demand. We have warned for a long time about the dangers of continuing this uncontrolled approach and the need to agree on a unified, consensual budget.”

He further stated, “If this uncontrolled and inflated spending continues, it will further fuel the demand for foreign currency, especially with the decline in oil revenues being deposited into the Central Bank. This situation will leave the Central Bank unable to meet the demand for foreign currency in the coming period, and it may be forced to devalue the dinar again to address this demand. This would be disastrous for the national economy and daily consumer prices.”

Exclusive: Al-Wahsh Comments on the Central Bank of Libya’s Statement

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Economic expert Saber Al-Wahsh exclusively told our source about the Central Bank of Libya’s recent statement, describing the figures in the report on revenues and expenditures from January 1, 2025, to February 28, 2025, as concerning.

He added that total foreign currency revenues amounted to 3.6 billion USD, while expenditures were 6.1 billion USD, resulting in a deficit of 2.5 billion USD. Despite total public expenditures being 8.4 billion LYD (about 1.5 billion USD), he questioned, “Where do these funds, chasing dollars, come from?”

Al-Wahsh further explained that nearly 3 billion USD of foreign currency was requested for personal purposes, most of it likely being sought for profit through selling it on the parallel market.

He concluded, “Where do these funds come from to request such a huge amount of hard currency on the parallel market? We don’t want to create noise over this publication, but this situation is unsustainable. I believe the Central Bank is worried, but it’s concealing its concerns in hopes of an improvement.”

With February Salaries Excluded and a Surplus Exceeding 9 Billion… The Central Bank Discloses Revenues and Expenditures

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The Central Bank of Libya has released its report on revenues and expenditures from the beginning of 2025 until February 28, revealing total revenues of 18 billion LYD and expenditures of 8.4 billion LYD.

Revenues include 14.0 billion LYD from oil sales, 3.7 billion LYD from oil royalties, 41.1 million LYD from taxes, 12.5 million LYD from customs, 26.2 million LYD from telecommunications, and 245.8 million LYD from local fuel sales and other sources.

Expenditures include 5.9 billion LYD for salaries (for January only, as February salaries were not recorded), 35 million LYD for operating expenses, 0 LYD for development, 2.5 billion LYD for subsidies, and 0 LYD for emergency expenses.

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Exclusive: Central Bank Governor Instructs Raising Withdrawal Limits in Al-Asabi‘ah and Sending Cash Liquidity

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Our Central Bank of Libya (CBL) source confirmed that Governor Naji Issa has issued directives to commercial banks and their branches in Al-Asabi‘ah to increase cash availability and raise withdrawal limits. The move aligns with the CBL’s commitment to ensuring liquidity and providing necessary banking facilities to support citizens amid the difficult conditions in the city.

According to the source, Jumhouria Bank delivered a 2 million dinar cash shipment yesterday, and an additional 5 million dinars will be sent today, raising the withdrawal limit to 5,000 dinars per customer.

The source added that the Central Bank of Libya is closely monitoring the situation on the ground to provide financial support to citizens in the region, in accordance with its mandated duties and applicable regulations.

Exclusive: The Central Bank Issues Instructions to Banks to Prioritize Branches in the South

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Our source has obtained a correspondence from the Central Bank of Libya regarding its instructions to banks, emphasizing the need to pay special attention to their branches in the southern region.

The instructions also include expanding the issuance of electronic cards, doubling the number of point-of-sale (POS) terminals, and increasing the number of ATMs.

This comes as part of the Central Bank of Libya’s plan to enhance electronic payment systems across all bank branches operating in Libya. It also follows the inspection tour conducted by the Governor and members of the Central Bank’s Board of Directors in the city of Sabha to assess the efforts of commercial banks in the southern region and their compliance with the Central Bank’s expansion plan to ensure electronic services reach all citizens across Libya.

The instructions specifically call for a focus on improving bank branches in the southern region, particularly in expanding the issuance of electronic cards for customers, increasing the number of POS terminals, and distributing ATMs geographically in an efficient manner. Additionally, banks are required to ensure sufficient cash liquidity at all times, monitor ATMs technically and security-wise, and implement effective mechanisms to provide and regulate cash withdrawals daily. These measures aim to meet customers’ essential needs and ensure financial stability, ultimately easing the financial burden on citizens in these areas.

The Central Bank has urged banks to give this matter full attention and strictly adhere to its instructions. The bank branches in the southern region will be under continuous monitoring by the Central Bank to ensure their development aligns with its requirements.

Exclusive: The Central Bank Directs Banks Not to Deduct Any Amounts from the Wife and Children’s Grant

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Our source has obtained a communication from the Central Bank of Libya to commercial banks, requesting them to take the necessary measures to ensure that no amounts are deducted from the wife and children’s grant, in accordance with the communication from the grant management at the Ministry of Social Affairs.

This comes in response to complaints from several citizens regarding some banks in Libya deducting amounts from the wife, children, and daughters’ grant, which is considered a violation of the law.

Exclusive: The Central Bank Reveals the Arrival of the New Cash Liquidity Shipment at the Bank’s Headquarters

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The Central Bank of Libya exclusively revealed to our source that the new cash liquidity shipment has arrived at the bank’s headquarters.

This is to be placed in the issuance department’s safes in preparation for distribution according to the plan approved by the Governor.

Exclusive: Central Bank Confirms Sending an Additional 60 Million Dinars to Its Sebha Branch

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The Central Bank of Libya exclusively revealed to our source that it has dispatched an additional 60 million dinars to its Sebha branch to support the bank’s reserves and commercial bank branches in the southern region.

This move aligns with the CBL’s strategic plan and follows the directives of Governor Naji Mohammed Issa and Deputy Governor Marai Al-Barasi. The bank confirmed that it will continue sending cash shipments gradually until liquidity reaches all Libyan cities, as part of its planned efforts to ensure financial stability.

UN Report Reveals Oil Revenues Being Redirected Away from Central Bank

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The Turkish newspaper Daily Sabah reported on Tuesday that several Arab and international newspapers have cited a United Nations report implicitly accusing Saddam Haftar, son of Khalifa Haftar, commander of the armed forces in eastern Libya, of “smuggling” oil through a private company involved in crude oil sales.

According to the Turkish newspaper, a Libyan company linked to Saddam Haftar has exported at least $600 million worth of oil since May, based on shipping records and UN experts.

The report mentioned that Arkino Oil, a relatively unknown company founded in 2023, may be facilitating the diversion of some oil revenues away from the Libyan Central Bank.

Meanwhile, the weekly newspaper Al-Arab stated on February 18 that Arkino is indirectly controlled by Saddam Haftar, who serves as the Chief of Staff of the Ground Forces in the so-called Libyan National Army, according to the UN Panel of Experts.

Earlier, Reuters conducted an investigation into the company, using shipping documents and data from the London Stock Exchange Group and Kpler. The findings suggested that some oil revenues were being redirected away from the Libyan Central Bank. Simultaneously, the investigative organization The Sentry raised significant concerns about potential corruption.

The Asharq Al-Awsat newspaper noted that the UN document emphasized Saddam Haftar’s appointment to his military position last May, allowing him to strengthen his control over Libya’s regional relations and economic interests, according to experts.

The Arab Weekly reported that journalists could not identify the owners of Arkino, but the UN Panel of Experts stated in a report submitted to the Security Council on December 13 that the company is indirectly controlled by Saddam Haftar.

Arkino’s headquarters is in Benghazi, an area under Haftar’s control, according to the company’s website.

Despite ongoing instability in Libya, oil exports remain under the control of the eastern government. The National Oil Corporation, which has long operated independently and maintained political neutrality, still accounts for the majority of Libya’s oil exports. It shipped approximately 264 million barrels of oil, valued at around $21 billion, during the same period in which Arkino conducted its shipments, according to Kpler data.

Exclusive: Central Bank Aims to Keep Dollar Below 6.30 Before Ramadan, Policy Tied to Spending and Revenue

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The Central Bank of Libya told our source exclusively that its goal is to ensure the black market exchange rate of the dollar does not exceed 6.30 LYD before Ramadan, with a further target of 6.15 LYD during the holy month.

The bank stated that its monetary policies rely on public spending and oil revenue to achieve these targets.