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Exclusive: Central Bank Sends 15 Million to Ghat City – Here’s the Breakdown

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The Central Bank of Libya exclusively revealed to our source that it continues to implement its planned strategy to ensure cash liquidity.

Under the directives of Mr. Naji Mohamed Issa, Governor of the Central Bank of Libya, and his deputy, the Central Bank this morning dispatched a new cash shipment. The shipment departed from Mitiga Airport in Tripoli, heading to Ghat City Airport, carrying 15 million dinars. Of this amount, 7 million is allocated to North Africa Bank, and 8 million is allocated to the National Commercial Bank.

The Central Bank will continue to send cash shipments in succession until all Libyan cities receive their allocations.

A Banker to Sada: “Revenues Are Being Transferred to the Central Bank Regularly… Here Are the Positive Indicators”

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Our exclusive source in the banking sector revealed: “We have received news that the efforts of the Governor of the Central Bank of Libya are gradually bearing fruit, with positive indicators continuing to rise.”

The source added: “The National Oil Corporation has started to respond and transfer oil revenues almost regularly. This will enhance the Central Bank’s ability to meet the increasing demand for foreign currency and manage the state budget with sufficient flexibility.”

He further stated: “In addition to this, the cessation of fuel swaps, which have burdened the state and carried many ambiguities and numerous questions regarding hidden corruption allegations, is another positive step.”

Exclusive: Central Bank Sends 60 Million Dinars to Its Sabha Branch to Support Its Reserves

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The Central Bank of Libya exclusively revealed to our source that it has dispatched an additional cash shipment worth 60 million dinars to support the reserves of its branch in Sabha.

This initiative is part of the Central Bank’s plan to ensure cash availability, in line with the directives of the Governor of the Central Bank and his deputy.

The bank began this morning sending new cash shipments according to its pre-prepared plan and will continue to dispatch shipments to supply the reserves of all branches of commercial banks in Libyan cities.

Exclusive: Central Bank Begins Sending New Cash Shipments

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The Central Bank of Libya exclusively confirmed to our source that, as part of its plan to ensure the availability of cash, and under the directives of Mr. Naji Mohamed Issa, Governor of the Central Bank, and his deputy, the bank began this morning dispatching new cash shipments according to a pre-prepared plan.

A flight departed today from Mitiga Airport in Tripoli to the city of Ubari, carrying a cash shipment of 15 million dinars. Of this amount, 4.5 million dinars were allocated to Jumhouria Bank, 4.5 million dinars to North Africa Bank, and 6 million dinars to the National Commercial Bank. The Central Bank will continue sending cash shipments to supply the vaults of all branches of commercial banks across Libyan cities.

Al-Akari Questions: “Is the Exchange Rate Increase Justified During This Period?”

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Economic expert Misbah Al-Akari raised questions in a post on his official page regarding the recent increase in the exchange rate, asking whether it has legitimate justifications. He explained that exchange rate hikes typically occur when there is a decrease in the supply of foreign currencies, complex restrictions on accessing foreign currency, political turmoil, or the shutdown of oil fields. However, he emphasized that none of these conditions currently apply.

Al-Akari also questioned whether the Central Bank has the tools to intervene and curb the currency’s depreciation. He affirmed that it does, noting that central banks monitor exchange rates and determine when to intervene to prevent currency weakening. This can involve purchasing large amounts of domestic currency by selling foreign reserves or reassessing exchange rates.

He elaborated on the Libyan context, referencing state reserves, which, according to Audit Bureau reports, amount to over $80 billion. This equates to LYD 455 billion. The current demand for foreign currencies is LYD 170 billion, equivalent to $29.8 billion or 37% of foreign reserves. In most countries, monetary policy tools, particularly interest rates, are used to manage high money supply and ease pressure on foreign currency demand. However, in Libya, this tool is not utilized.

Al-Akari highlighted that the new Central Bank management has adopted measures such as an Islamic finance product called “absolute mudaraba.” This initiative aims to employ surplus funds from commercial banks at the Central Bank, aligning with depositor funds in commercial banks. This measure is expected to absorb a portion of the money supply, reducing pressure on foreign reserves.

He added that developments point to a resolution of barter issues, likely boosting oil revenues as crude prices rise to $80 per barrel.

Al-Akari concluded by noting the growth in oil production, relative security stability, and active reconstruction efforts. He also highlighted upcoming Central Bank decisions, including improved foreign exchange services, payroll withdrawals through electronic payment systems at 60% of salary value, and clarified that he does not believe the dollar’s exchange rate will continue to rise.

Exclusive: Husni Bey Comments on Central Bank and NOC Statement as a Wake-Up Call, and Questions the Appropriate Exchange Rate to Avoid Budget Deficit

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Libyan businessman Husni Bey told our source: “Through following the page The Economic Salon, which is a non-governmental organization and civil society entity focused on economic matters, and observing the discussions, reactions, and critiques of the circulars issued by the Central Bank of Libya (CBL), it’s clear we are hearing alarm bells.”

He added:
“The response from the National Oil Corporation (NOC) attributing the low revenues in 2024 to several reasons includes:

  • Oil shutdowns due to political issues.
  • Rising fuel costs and exchange agreements.
  • The lack of a budget representing fuel and energy allocations.”

Husni Bey commented with numerical analysis, stating: “The CBL’s circular and the NOC’s response regarding the reasons for the decline in cash flows from oil sales represent a wake-up call or an opportunity to raise public awareness and demand change.”

He further said: “There is no disagreement that deep distortions threaten Libya and its people, as reflected in the growing fuel bill, according to the NOC’s statement, especially after the adoption of barter programs since 2020 and earlier.”

Continuing, he noted: “The Central Bank sounds the alarm, and the NOC issues warnings; both are correct from their respective perspectives. The root cause of what is happening is the failure of the House of Representatives and the Government of National Unity to approve a budget that includes all revenue and expenditure items, covering total oil production and expenditures, including fuel and energy. The government must present a budget, and the House of Representatives must approve one that sets limits on government spending.”

He emphasized: “Expenditures, in any form, must not exceed total revenues from all sources. In my view, resistance to changing the mechanism and system of energy and fuel subsidies, which consume 38% of Libya’s oil production share after deducting the 12% share of foreign companies, is a priority for any attempt at fiscal reform.”

He added: “Our mindset as Libyans calls for change, but our hearts insist on maintaining the status quo—even as the purchasing power of the dinar collapses, inflation rises, and subsidies are stolen or smuggled. Strangely, we all aspire to and demand better results and different outcomes using the same inputs and mechanisms unchanged for 50 years. We even reject changes, starting with substituting subsidies with cash to achieve fair distribution. We fail to recognize that the fuel bill approaches $14 billion, costing each Libyan family about $12,000 annually or 5,500 LYD monthly.”

Husni Bey continued: “It was a general shock when the NOC transferred $500 million to the government’s account at the Central Bank compared to the significantly higher dollar sales made by the Central Bank. Everyone is asking, ‘What’s going on?’ Personally, I believe the only change is the rising fuel bill, which reduces net dollar revenues transferred to the CBL. The explanation in numbers is as follows:

  • The $500 million transferred by the NOC covers oil sales for only eight days.
  • If the transfer continues at the same value ($500 million every eight days), the total annual amount transferred by the NOC would approximate $22.8 billion in 2025.
  • Monthly transfers of $1.9 billion by the NOC to the CBL do not include fuel and energy costs.
  • Fuel and energy barter agreements internally amount to $375 million monthly ($4.5 billion annually) or 12% of Libya’s oil and gas production share.
  • Monthly transfers of $1.9 billion from the NOC to the CBL exclude $750 million monthly for barter and fuel and energy agreements, totaling $9 billion annually or 25% of Libya’s oil production share.”

He summarized: “Libya’s annual oil and gas revenues amount to $36.3 billion, distributed as follows:

  • $22.8 billion transferred to the CBL.
  • $4.5 billion for local and external fuel and gas barter agreements.
  • $9.0 billion for external oil and gas barter agreements.”

Husni Bey posed critical questions:

  • “Do we accept that $13.5 billion (37.3% of Libya’s share) is wasted through excessive consumption, legitimized theft, and smuggling?
  • Does the monthly $1.9 billion or annual $22.8 billion suffice to cover 93% of the remaining public expenditure after subsidy costs, at an exchange rate of 4.850, 5.500, or 6.000?
  • What is the appropriate exchange rate that should be adopted to prevent the budget from being financed by deficits, thus avoiding further collapse?”

Exclusive: Al-Ghwil Lists Reasons for Delayed Transfers of Oil Revenues from the National Oil Corporation to the Central Bank

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Presidential candidate and economic expert Mohamed Al-Ghwil stated to our source regarding the delay in transferring revenues from the National Oil Corporation to the Central Bank of Libya, saying: “One of the reasons is the exchange of crude oil for products (diesel and gasoline). I believe the NOC should commit to providing detailed monthly reports on this, as well as reports for previous years.”

Al-Ghwil clarified that among the reasons is the annual increase in exchanges and the need to review the terms of contracts for selling Libyan crude oil to ensure that payment periods for shipments are reduced to no more than three weeks from the shipping date. He also mentioned the lack of attention to monthly settlements between the NOC and the General Electricity Company.

He added: “It is unclear to the public whether there are revenues deposited in the accounts of the Libyan Foreign Bank and its subsidiaries that have not been transferred to the general revenue account (the Public Treasury) at the Central Bank of Libya. Similarly, it is unclear whether there have been recent restrictive measures imposed by the U.S. Treasury on transfers to the CBL’s accounts in recent months.”

Al-Ghwil concluded by noting: “These reasons are assumptions, and some may prove to be correct.”

Al-Akkari Questions: “Why Is Only One Entity Allowed to Issue Reports and Clarify the Truth to Society While Using Part of Its Reserves to Mitigate Parallel Market Risks?!”

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Former member of the Central Bank of Libya’s Exchange Rate Committee, Misbah Al-Akkari, expressed his concerns on his official Facebook page:

“With the price of oil at $80 per barrel, the National Oil Corporation reports a production of 1.4 million barrels per day, while the Central Bank has supplied $1.3 billion to the market for various purposes within just 14 days. Meanwhile, the parallel market exchange rate stands at 6.6 LYD per dollar.”

He added:
“Logic indicates there is a problem. The first issue lies in the deposit of oil revenues to the Central Bank, as it is unreasonable that only $500 million was deposited in half a month.

The second and far more critical problem is the absence of a real deterrent force to confront criminals in the currency market.

The third issue concerns those applying to purchase foreign currency for a specific purpose but then using it for speculation instead.”

Al-Akkari continued:
“Why is it that only one entity issues reports, clarifies the truth to the public, and uses part of its reserves to mitigate the risks of the parallel market while everyone else watches as if the matter doesn’t concern them?!”

He proposed solutions, urging the state to act promptly with the following measures:

  1. Parliament should urgently pass a law criminalizing the sale of foreign currency outside the legal framework.
  2. The government, through the Ministry of Economy, should issue directives to ban the entry of goods into the country unless foreign currency was obtained through official channels.
  3. Security agencies, in cooperation with the banking sector, should investigate a sample of foreign currency recipients to verify the purpose of the funds and trace how they are used, penalizing any violations.
  4. Awareness campaigns should target both traders and citizens, emphasizing the severe harm caused by currency speculation during this period, which will ultimately result in significant losses for everyone involved.

The Central Bank Covers the Demand for Foreign Currency from Its Accounts as the National Oil Corporation Explains Delays in Revenue Deposits

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The Central Bank of Libya announced in a statement yesterday that it continues to meet the demand for foreign currency, which exceeds the oil revenues deposited into its accounts since the beginning of January 2025. As of today, these revenues amount to only $500 million.

The CBL called on relevant parties to ensure the regular deposit of oil revenues so that the bank can meet the growing demand for foreign currency.

As of Tuesday, January 14, 2025, the total foreign currency allocated via the platform reached $731 million.

Regarding letters of credit and transfers, the CBL confirmed that it continues to cover all requests from commercial banks, with $490 million allocated for various goods and services without any restrictions. Additionally, $110 million was allocated to meet requests from public institutions, bringing the total to $1.331 billion.

On the other hand, the National Oil Corporation reported that oil revenues for 2024 decreased by $6.447 billion compared to 2023.

The NOC clarified that $2.4 billion of this amount relates to 2022 revenues, transferred to the treasury in 2023. This sum includes $718 million in oil revenues and $1.682 billion in taxes and royalties paid by TotalEnergies for the period from March 2018 to November 2019, representing revenues from previous years rather than 2023.

The NOC added that the average oil production in 2024 fell by 36 million barrels compared to 2023 due to closures that halted production for various reasons.

Furthermore, the average price of Brent crude in 2024 was $1.86 per barrel lower than in 2023.

The NOC highlighted additional financial burdens in 2024, including a $500 million increase in fuel imports due to rising demand from major consumers and repeated shutdowns at the Zawiya Refinery. These challenges necessitated filling the local refining gap through alternative external sources and substituting diesel for gas to sustain essential facilities amid fluctuating gas production.

Additionally, the NOC noted a $100 million increase in fuel supply expenses for the local market compared to 2023, including $40 million in debt settlements from previous years.

Gas imports were valued at $199 million, executed under a Cabinet decision, while $447 million was allocated to settle gas-related obligations to Eni in 2024, compared to 2023. This increase resulted from reduced gas production and higher domestic gas consumption, limiting export volumes.

Central Bank Statement Reveals Increase in Foreign Currency Usage in 2024 Compared to Previous Years, Reaching 27 Billion Dollars

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The Central Bank of Libya revealed an increase in the use of foreign currency during 2024 compared to previous years, reaching 27 billion dollars.

Salaries for employees abroad amounted to approximately 302 million dollars, student grants for those studying abroad were 207 million dollars, treatment abroad costs were 101 million dollars, fuel subsidies were zero, the National Oil Corporation received 1.648 billion dollars, remittances to other entities were 600 million dollars, and the Medical Supply Authority and the National Center for Disease Control received 288 million dollars.

The General Electricity Company received 896 million dollars, higher education and scientific research received 38 million dollars, and credits for other entities amounted to 239 million dollars.

Additionally, documentary credits reached 12.950 billion dollars, remittances were 352 million dollars, personal purposes were 9.257 billion dollars, and merchant cards totaled 152 million dollars.

Exclusive: Abu Bakr Abu Al-Qasim: “The Central Bank and the Battle Against Market Speculators”

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The Head of the Accounting Department at the Libyan Academy for Graduate Studies, Abu Bakr Abu Al-Qasim, exclusively told our source: “Foreign exchange sales for personal purpose cards reached $472 million during the first 12 days of January. The Central Bank remains steadfast in its policy of meeting all foreign currency demands without interruption or restrictions, despite rumors propagated by speculators aiming to create chaos in the market with claims of halting the foreign currency sales system.”

He added, “Despite inflated and uncontrolled government spending, coupled with declining oil revenue flows, the Central Bank continues to lead the battle against market speculators alone through a well-thought-out policy, even as governments remain idle.”

He concluded by saying, “It is imperative for everyone to stand by the Central Bank in its battle against speculators and exert pressure on governments in both the East and West to rationalize spending and deposit oil revenues fully into the general revenue account at the Central Bank without deductions. This is the only solution to maintaining the strength of the dinar and potentially improving its value in the near future.”

Exclusive: Al-Zantouti: “The Real Issue is the Inability to Determine a Fair Exchange Rate for the Dinar”

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Financial expert Khaled Al-Zantouti told our source exclusively, “For years, we have failed to establish a fair exchange rate for the dinar, one that is determined using standard economic models based on recognized macro and microeconomic variables.”

Al-Zantouti added, “Over the years, the exchange rate for our dinar has been determined by a group of speculators in the Souq Al-Mushir, driven by their interests and benefits. These individuals (not to generalize) manipulate the supply of dollars to control the rate. This occurs amid the absence of effective monetary policies from the Central Bank of Libya, which has remained a passive observer without monetary policy tools or authority over the reckless spending of competing governments. These governments, in some cases, collaborate with those speculators in a covert agreement to undermine the dinar’s strength.”

He continued, “Amid this shameful and consumption-driven competition and the collusion of crisis traders, the Central Bank remains paralyzed, unable to address the dinar’s plight. This paralysis stems from the lack of integration between monetary, fiscal, and trade policies, not to mention the uncertainty around how the exchange rate is determined—whether it’s fixed, flexible, or subject to partial or full floating.”

“These cumulative factors make it extremely difficult to estimate the exchange rate for 2025 scientifically or objectively. Unfortunately, indicators suggest a continuation of the confusion and speculation that marked previous years.”

Al-Zantouti also noted, “It is evident that the Central Bank, under its new administration, is attempting to establish a foundation for its monetary policy and regulate the currency exchange market. While this effort is commendable, it will likely take time. Ultimately, the Souq Al-Mushir will remain the decisive factor in determining the exchange rate.”

He highlighted the Central Bank’s ability to defend the current exchange rate (with the 15% tax) by ensuring dollar supply, combating inflation, maintaining foreign currency reserves, and potentially using these reserves if oil revenues decline. He remarked, “If the Central Bank manages to maintain the current rate between 6.10 and 6.40, under the present circumstances, it would be a significant achievement.”

Al-Zantouti concluded, “Given the prevailing conditions of unchecked government spending, political instability, and uncertainty around oil prices and production, the Central Bank cannot fundamentally address the exchange rate issue or set a fair and sustainable rate for the long term. However, if it succeeds in maintaining the range of 6.10–6.30 this year, it would undoubtedly be a positive accomplishment. We hope for this outcome.”

Exclusive: Saber Al-Wahsh Questions Central Bank’s Ability to Sustain Current Exchange Rate Amid Declining Foreign Currency Revenues

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Economic expert Saber Al-Wahsh exclusively told our source that the exchange rate is a product of interaction rather than a decision.

He explained: “Although adjusting the exchange rate is issued by the Central Bank, its execution relies on the government and the National Oil Corporation. The Central Bank’s role is limited to addressing emergency circumstances using available reserves. Over the past year, the Central Bank utilized $8 billion in reserves to maintain the current exchange rate.”

He added: “But how long can the Central Bank defend this rate amidst clear declines in foreign currency revenues and expanded deficit spending? The answer lies with the National Oil Corporation through the revenues it generates and with the governments through their expenditures. Essentially, the Corporation and the governments are the ones determining the currency exchange rate.”

Al-Wahsh further stated: “If the issues related to barter trade are resolved, fuel imports are organized, and spending is rationalized, we may witness some stability in the exchange rate. However, if the current situation persists, an exchange rate adjustment will not be far off, which is something we hope to avoid.”

Exclusive: Al-Twibi Files Complaint Against Parliament Speaker and Central Bank Governor Over Failure to Implement Tax Cancellation Rulings

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Lawyer Thuraya Al-Twibi revealed to our source that she has filed a complaint against the Governor of the Central Bank of Libya and the Speaker of the House of Representatives for their refusal to implement two rulings. These rulings mandate the suspension of the decision and the cancellation of the imposition of the foreign currency tax, according to her statement.

She stated: “Article 234 stipulates the dismissal and imprisonment of any employee who refuses to execute court rulings. The crime defined under Article 234 of the Penal Code is evident, and the situation constitutes a clear violation, which does not require immunity to be lifted, if immunity exists.”

She added: “We call on the Attorney General to swiftly take legal action, as the crime under Article 234 of the Penal Code continues despite the issuance of the rulings. This is to leverage the clear violation and set an example for officials to respect and execute court decisions.”

Exclusive: With the Continuation of the Imposed Tax, the Central Bank Issues Regulations for Resuming Foreign Exchange Sales Using the Same Previous Mechanism

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Our source has obtained a correspondence from the Director of the Banking Supervision and Control Department at the Central Bank of Libya to the general managers of banks. The correspondence concerns the addition and amendment of certain regulations governing foreign exchange transactions as outlined in the referenced circular. These regulations address the purchase of foreign exchange for various purposes and the opening of letters of credit. Payment for documents exchanged with the correspondent bank is to be made within 15 days of receiving the documents. This condition must be included in the telegram initiating the letter of credit.

Additionally, a certificate of goods export from the country of the beneficiary must be included as part of the exchanged documents for letters of credit. This applies specifically to land-shipped goods of Tunisian origin through Ras Ajdir (customs declaration document), Algerian-origin goods through the Dehiba border crossing, and Egyptian-origin goods through the Emsaad–Saloum crossing (standardized customs declaration form). This condition is also to be included in the telegram initiating the letter of credit.

Moreover, regulations concerning electronic cards for companies, small traders, and artisans stipulate a maximum annual loading limit of $500,000 or its equivalent in other foreign currencies. This amount is to be loaded in installments, with no single installment exceeding $100,000. Subsequent installments may only be loaded after suppliers provide customs declarations verifying the import of the required goods and equipment, along with evidence of service completion by the entities benefiting from the amounts loaded onto the issued card. Compliance with any instructions from the Central Bank or other relevant authorities regarding suspended banking transactions for specific entities must also be ensured.

For direct external transfers for industrial companies, the maximum amount is set at 4% of the value of the letters of credit executed by the company during the previous year at the Central Bank of Libya, up to a limit of $2 million. These transfers must be made in installments and require prior approval from the Banking Supervision and Control Department.

The circular emphasized the implementation of the aforementioned regulations while maintaining adherence to previously issued controls in this regard.

Furthermore, the Central Bank clarified the continuation of the decision by the Speaker of the Libyan House of Representatives, No. 86 of 2024, issued on November 20, 2024, which imposes a levy on the official exchange rate until contrary instructions are issued by the Central Bank.

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