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Exclusive: Central Bank Directs Banks to Open the Foreign Exchange System on January 5 – Here’s What Was Requested

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Our source has exclusively obtained a circular from the Central Bank of Libya addressed to commercial banks, instructing them to begin accepting foreign exchange coverage requests through its system starting January 5 for various purposes.

The directive emphasized the need for banks to prepare their systems and get ready to accept requests from clients, including individuals, companies, and entities, for all purposes.

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Exclusive: Banking Source Reveals the Opening of the Foreign Exchange System on January 1 for All Purposes

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Our banking source confirmed that the foreign exchange system will be opened on January 1 for all purposes.

The Central Bank’s administration is reportedly ready to begin operations normally, according to the source.

Al-Shaeibi Explains the Importance and Implications of the Federal Reserve’s Alert to the Central Bank Regarding Dollar-Denominated Transactions

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Banking expert Omran Al-Shaeibi commented on the letter sent by the Central Bank of Libya to the Audit Bureau in response to the alert issued by the U.S. Federal Reserve, which called for subjecting its dollar-denominated transactions to review and auditing. He described this alert as a significant indicator of the nature of the relationship between the Libyan banking sector and international financial institutions. Al-Shaibi stressed the need for serious action, as this measure falls under the “de-risking” policy, whereby financial institutions end or restrict business relationships with certain clients or client groups to avoid risks, instead of managing them in line with the Financial Action Task Force (FATF)’s risk-based approach.

Al-Shaeibi explained the importance and implications of this measure as follows:

  1. Loss of Institutional Trust: This measure reflects deep concerns from the U.S. Federal Reserve about the Central Bank of Libya’s ability to manage its financial operations according to international standards. This impacts the bank’s reputation and reduces international dealings.
  2. Complicated Financial Operations: This involves subjecting international financial transactions to meticulous reviews or involving a third party in auditing processes, as indicated in the alert. Such actions could disrupt vital financial operations, such as collecting oil revenues or facilitating essential imports.
  3. Direct Economic Repercussions: Restrictions on dollar-denominated transactions may delay the country’s ability to meet external obligations, negatively affecting national economic stability and hindering the state’s ability to provide basic goods or maintain monetary stability.

He added that the implementation of the “de-risking” policy by international financial institutions, as per the FATF, is not solely tied to risks of money laundering and terrorism financing. It also reflects a comprehensive assessment of the institution’s adherence to the 40 international standards set by the FATF. This approach is based on internal risk assessments without requiring formal justification.

Al-Shaeibi emphasized the need for the Central Bank to enhance its procedures and demonstrate its ability to comply with international standards to restore correspondent institutions’ trust. This includes:

  • Preventing delays in international financial transactions.
  • Avoiding disruptions in financial flows with the global market.
  • Strengthening measures against money laundering and terrorism financing.
  • Developing a robust “Know Your Customer” system.
  • Increasing transparency in managing financial operations.
  • Engaging reputable third-party financial institutions to manage risks.
  • Seeking advisory support from international financial institutions to enhance compliance standards.
  • Working on a long-term strategy for sustained improvements.

He concluded by stating: “The recent uncalculated breach of the Central Bank has led international institutions to take stringent measures until trust in Libya’s financial institutions is restored. However, we trust the new board of directors and technical teams at the Central Bank to overcome this obstacle successfully.”

Al-Haddad: These Are the Reasons Behind the U.S. Federal Reserve’s Suspension of Dealings with the Central Bank of Libya

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Banking expert Ibrahim Al-Haddad stated in a post on his official page that the Central Bank of Libya has lost its status and credibility, as he described it. He attributed the U.S. Federal Reserve’s suspension of dealings with the Central Bank of Libya until an international auditing firm is assigned to review the bank to a complete lack of transparency and disclosure, which raised concerns about the bank’s condition. He also pointed to the inaccuracy of the bank’s financial statements, balance sheets, and financial positions, along with contradictions in the announced data, information, and statistics.

In his post, Al-Haddad added: “There is ambiguity regarding Libya’s foreign currency reserves abroad and fears surrounding them, especially after Al-Kabeer’s statement that they amount to $29 billion instead of the $84 billion reported in the International Monetary Fund’s report. Deloitte’s internationally commissioned financial audit reports have revealed very serious violations, breaches, and substantial risks in the bank’s procedures and operations.”

Al-Haddad further noted: “Deloitte and the Organized Crime and Corruption Reporting Project (OCCRP) disclosed suspicious practices involving significant manipulation in amending the contract between the bank and the British company De La Rue for printing currency. This resulted in massive losses amounting to $4.8 billion, or 6.5 billion Libyan dinars. Additionally, Libyan currency was unlawfully printed in Russia by the company Goznak at a very high cost of $6 per banknote, whereas the global standard at the time was between 4 to 13 cents per note. Furthermore, Deloitte’s report was concealed by Al-Kabeer and Al-Hibri, allegedly to preserve their positions and hide their corrupt practices.”

He also pointed out: “A report by the World Gold Council revealed the disappearance of 27.18 tons of Libya’s gold reserves held at the Central Bank in 2014. The bank failed to announce this reduction, as the reserves dropped from 143.82 tons to 116.64 tons. The IMF noted that the Central Bank recently purchased 30 tons of gold, which was considered an attempt to obscure previous facts and events. Additionally, Global disclosed suspicions of corruption and money laundering related to foreign credits and transfers exclusively directed by Al-Kabeer to ABC Bank in London.”

Al-Haddad concluded his post, stating: “Meetings held by former Governor Al-Kabeer and the current Acting Governor with ambassadors from various countries, where they disclosed secrets and information about the bank and the state’s condition, as well as meetings with international organizations, the U.S. Federal Reserve, and the U.S. Treasury in Tunisia, revealed the unstable situation of the Central Bank. These meetings confirmed the inefficiency, inexperience, and inability of the Acting Governor and his deputy to manage the bank’s affairs effectively, leading to the U.S. Treasury’s support for the Federal Reserve’s aforementioned measures.”

Al-Shaeibi: This Notice Signals a Serious Risk in the Relationship Between the Libyan Banking Sector and International Financial Institutions

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Economic expert Omran Al-Shaeibi an article saying: Social media platforms have circulated the letter sent by the Central Bank to the Audit Bureau based on the warning issued by the U.S. Federal Reserve to the Central Bank regarding subjecting its dollar-denominated transactions to review and auditing.

This notice signals a serious risk in the nature of the relationship between the Libyan banking sector and international financial institutions and requires dealing with it with utmost seriousness. This measure falls under the “de-risking” policy described by the Financial Action Task Force (FATF), where financial institutions terminate or restrict commercial relationships with clients or categories of clients to avoid risks instead of managing them, in line with FATF’s risk-based approach.

What is the significance of this measure and its implications?

Firstly, the loss of institutional trust, as this procedure expresses deep doubts from the Federal Reserve about the Central Bank of Libya’s ability to manage its financial operations in accordance with international standards, affecting the reputation of the Central Bank and consequently reducing international transactions.

Secondly, complicating international financial operations and subjecting them to rigorous reviews or involving a third party in auditing processes, as noted in the letter, which could lead to disruptions in critical financial operations such as collecting oil revenues or facilitating essential imports.

Thirdly, direct economic repercussions due to restrictions on dollar-denominated transactions that could result in delays in fulfilling the state’s external obligations, negatively affecting national economic stability and impacting the state’s ability to provide essential goods or maintain monetary stability.

The application of the “de-risking” policy by international financial institutions, according to the FATF, is not only related to risks of money laundering and terrorism financing but also reflects a comprehensive view of the concerned institution and its adherence to the forty international standards set by the FATF. This does not require formal justification, as it pertains to risk management based on internal evaluations.

The Central Bank must improve its procedures and prove its ability to adhere to international standards to regain the trust of correspondent institutions, prevent delays in international financial transactions, avoid disruptions in financial flows with the outside world, enhance anti-money laundering and terrorism financing measures, develop a robust system for implementing “Know Your Customer” procedures, raise transparency levels in managing financial operations, involve reputable and trusted financial institutions as third parties to manage risks, seek advisory support from international financial institutions to improve compliance standards, and work on a long-term strategy.

When the Central Bank was stormed in the past period through uncalculated methods, it prompted international institutions to take measures that will remain strict until confidence in the financial institutions of the Libyan state is renewed.

We also trust the new board of directors and the technical staff at the bank to overcome this obstacle successfully.

Exclusive: The Central Bank Reveals Arrival of a New Shipment of Cash from Abroad

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The Central Bank of Libya exclusively revealed toour source that a new shipment of cash arrived this evening from abroad. The cash was immediately transported to the Central Bank’s vaults to prepare it for distribution to all branches of commercial banks in Libya, in accordance with the previously approved timeline.

This step comes as part of the Central Bank of Libya’s plan to ensure cash availability, under the directives of Mr. Naji Mohammed Issa, the Governor of the Central Bank, and his deputy.

Abu Snina Writes About the Federal Reserve’s Warning to the Central Bank of Libya on Reviewing Dollar Transactions

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Economic expert Mohammed Abu Snina wrote about the warning issued to the Central Bank by the U.S. Federal Reserve regarding the review and audit of its dollar-denominated transactions:

This measure falls under what is known as D-Risking, a procedure adopted by international financial institutions when they perceive financial risks associated with their transactions with certain banks or financial institutions. This often leads to suspending transactions with them.

Typically, the risks necessitating the review of financial transactions of a central bank or a financial institution operating in international markets include money laundering and terrorist financing risks (AML-CTF), as well as weak “Know Your Customer” (KYC) procedures applied by financial institutions under scrutiny for financial risks.

The measure reflects doubts about the financial institution’s ability to manage its funds transparently, implying a loss of trust in its management. This loss of trust is the worst scenario any financial institution can face.

The Federal Reserve’s decision to request the involvement of a third party to review financial operations with the Central Bank indicates that the Federal Reserve faces challenges in managing risks associated with financial transactions with the Central Bank and the Libyan banking sector in general or in managing these risks efficiently.

Naturally, the procedures adopted by international financial institutions to hedge against financial risks resulting from their dealings with various institutions vary from one institution to another, depending on the level of expected financial risks.

To continue financial transactions with high-risk institutions, third-party financial institutions with robust risk management systems are often engaged. These institutions are chosen based on their reputation and the financial risk management system they adopt.

According to the Financial Action Task Force (FATF), the application of D-Risking to any institution indicates a complex situation that goes beyond merely complying with anti-money laundering and terrorist financing procedures. It requires adherence to the full forty recommendations and standards of FATF directed at financial institutions. Notably, institutions implementing D-Risking policies with their clients are not obligated to justify the procedure or base it on judicial rulings. Risk management is an internal matter determined by the financial institution itself. The institution subjected to this procedure or ban (the customer or client) is only required to comply and rectify its situation.

Underestimating or downplaying the significance and seriousness of subjecting the Central Bank to D-Risking risks does not serve the national economy or the future of the Libyan banking and financial sector. This issue should be taken seriously and requires a strategy to ensure the sustainability of financial transactions with the external world. Such a strategy is necessary to avoid delays and disruptions to dollar-denominated transactions with correspondent banks abroad, including the collection of oil revenues in dollars. These disruptions would affect economic stability, the supply of consumer goods, the state’s ability to meet its external obligations, and result in losses for the Central Bank and the Libyan banking sector as a whole.

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

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Financial expert Khaled Al-Zantouti exclusively told our source regarding the Central Bank’s recent statement: “The average Libyan household consumes imported goods and services worth over 21,000 Libyan dinars monthly, which is three times the value of our oil exports.”

He added, “I was deeply astonished by the Central Bank’s recent statement and the figures it disclosed. It stated that during just 18 days of December, $3.5 billion worth of currency purchase requests were processed. Of this, $1.7 billion was for letters of credit and another $1.7 billion for personal transfers—staggering figures.”

Al-Zantouti explained, “This means we are transferring approximately $200 million daily, equating to about one billion dinars per day, to fund imports and other purposes. And as for ‘other purposes,’ you can underline that ten times. One billion dinars daily—day after day—are spent by Libyans on food, drink, medical treatment, and other needs, all sourced in foreign currency and from outside Libya. This averages 143 dinars per individual per day, assuming a population of 7 million Libyans.”

He elaborated, “For a family of five, this translates to approximately 21,450 dinars in imported goods and services per month. (This assumes that the consumption by foreigners is ultimately borne by Libyans.) Is this reasonable?”

He added, “Now let’s take another perspective: Based on the average Brent crude price of $72.5 per barrel for the first 18 days of this month and factoring in daily export volumes, the foreign partner’s share, and local refinery consumption, Libya’s oil revenues will not exceed $1 billion over these 18 days. This means that even if the full value of these exports were deposited in the Central Bank’s external account, we would still face a hard currency deficit of over $2.5 billion. In essence, our consumption exceeds three times the value of our oil exports.”

He noted, “This analysis is solely for imported goods and services. It does not even account for salaries and other public budget expenditures. Whatever the reasons or justifications, even if tied to year-end processes or annual closures, these figures are alarming, frightening, and disheartening.”

He concluded with a wry remark: “And then they ask me, ‘Why are you pessimistic, Mr. Khaled?’”

Commenting on the Central Bank of Libya’s Letter to the Audit Bureau: Mrajaa Ghaith Says the International Working Group Began Its Review Months Ago and Expressed Concerns, but the Matter Was Taken Lightly

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Former Central Bank of Libya board member, Mrajaa Ghaith, commented to our source regarding the letter sent by the Central Bank to the Audit Bureau. He stated that these issues had been repeatedly highlighted in the past, referencing the Global Witness report that revealed corruption in letters of credit. He also warned about the risks associated with the “Family Heads Grant,” emphasizing that it should have been disbursed in Libyan dinars. Allowing citizens to sell dollars without controls over how the currency is used or identifying the real buyers posed significant risks.

The international audit report highlighted its inability to access the letters of credit system, further indicating a lack of control over the use of foreign currency. The government’s cancellation of its agreement with a company monitoring letters of credit raised suspicions about its capability to combat money laundering and terrorism financing. The international working group initiated a review process months ago, expressed concerns, but the matter was not taken seriously.

Ghaith added: “The way the letter was leaked, which is unethical, has raised doubts about the Central Bank’s continued ability to process and approve dollar transactions through the U.S. Federal Reserve system. Perhaps some are unaware that all dollar transactions pass through specific systems in the United States, with a focus typically on countries experiencing instability. The political factor in this field cannot be overlooked.”

Exclusive: Commenting on the Central Bank’s Correspondence with the Audit Bureau, Husni Bey: “It’s Just a Storm in a Teacup, and the Bank Is Trying to Comply and Mitigate Risks”, Saying: “The Fault Lies with Us”

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Libyan businessman Husni Bey stated exclusively to our source: “What is being circulated about the Central Bank’s request to the Audit Bureau is nothing more than a ‘storm in a teacup.'”

He continued: “The Federal Reserve has not suspended any transactions related to Libya, nor has it threatened any immediate or urgent suspension. All it requires is an independent auditing office to conduct post-transaction reviews and monitor the use of Libya’s dollars by Libyan banks and the Central Bank in terms of transparency and combating money laundering and illicit activities.”

Bey added: “The requested measure is merely formal, natural, and objective—especially in a country like Libya, where the parallel market, speculation, and trade outside the banking system through personal cards and cash account for approximately 50% of the economic activity.”

He explained: “The U.S. Federal Reserve’s concerns stem from institutional division, deficit spending, the absence of an approved budget, and the lack of consensus on financial arrangements. This is compounded by allegations of undisclosed public funding sources, oil-for-fuel barter agreements, fuel smuggling, and other irregularities highlighted in the Audit Bureau’s reports. Fuel smuggling, which has become a contentious activity due to price disparities exceeding 3,000%, exacerbates these issues.”

Bey concluded: “We must admit that the fault lies with us. We need to work on unifying the budget or agreeing on financial arrangements, while also taking decisions to limit cash transactions—even criminalizing cash dealings above a certain amount, such as 50,000 dinars.”

He wrapped up his remarks by reiterating: “It is a storm in a teacup, and the Central Bank, through its correspondence with the Audit Bureau, is trying to comply with the request and reduce concerns and risks.”

Exclusive: Mrajaa Ghaith Explains That the Message on Financial Challenges Focuses on the 2025 Budget, Not the Overall Libyan Economy, with Some Side Proposals

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Mrajaa Ghaith, former board member of the Central Bank of Libya, clarified in his statement to our source regarding the open letter signed by several experts about the financial challenges facing the Libyan state. He stated that the paper is mainly related to the preparation and implementation of the 2025 budget. Its purpose is to encourage the parties involved to agree on a budget that will serve as the basis for spending in the coming year, along with measures to reduce waste, unnecessary spending, and to encourage the collection of the state’s rightful revenues. However, it does not address the overall issues of the Libyan economy, but rather focuses on the 2025 budget with some additional proposals.

Ghaith also stated: “The success of the recommendations depends on the seriousness of the parties in control of the state, and whether they have the will to combat waste and excessive spending without adhering to laws and spending through an approved budget, or whether spending will continue based on personal interests and desires.”

Exclusive: Central Bank Governor Requests Shakshak’s Approval to Initiate Contracting with a Specialized Company for Continued Engagement with the Federal Reserve Bank

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Our source has exclusively obtained a correspondence from the Governor of the Central Bank of Libya to the President of the Audit Bureau. In this letter, the Governor indicated that the Central Bank of Libya executes foreign exchange transactions and all transfers in US dollars through the Federal Reserve Bank in New York, which is the mandatory intermediary for all dollar-denominated transactions.

The Governor stated that the Federal Reserve Bank of New York has informed the Central Bank of Libya that it will suspend its dealings with the Central Bank of Libya (and the Libyan Foreign Bank) concerning the execution of commercial operations unless a mechanism for reviewing such transactions through an independent specialized company, referred to as a Third-Party Monitor, is established and approved by the Federal Reserve Bank.

He further explained that severing ties with the Federal Reserve would mean the suspension of all dollar transactions, as the Federal Reserve is the clearinghouse for dollar transactions with all international correspondents. Such suspension would lead to significant financial losses and expose the Bank to risks regarding transactions in other currencies, as well as reputational damage with international financial institutions.

The Governor emphasized that every effort had been made to dissuade the Federal Reserve from taking this action, most recently during a meeting in Tunis on December 13, 2024. The meeting was attended by the Governor, his deputy, and several board members, along with the Federal Reserve team and a representative from the U.S. Treasury Department. During the meeting, it was made clear that the U.S. Treasury supported the Federal Reserve’s demand. The best outcome achieved was a delay in implementing the suspension until the Libyan authorities approved the required review mechanism.

The proposed mechanism involves establishing a specific arrangement for post-payment reviews of dollar transactions. This would be entrusted to an independent specialized company with expertise in providing financial monitoring services, particularly in the areas of anti-money laundering and counter-terrorism financing, in accordance with international standards. The terms and details of this review mechanism would be subject to negotiations between the Central Bank of Libya and the selected company. This mechanism would grant the contracted auditing firm access to data related to commercial transactions, including supplier and importer information. It is worth noting that most of this data is already published monthly on the Central Bank’s website.

In conclusion, the Governor stated that, based on the above and in light of Article 25 of the Banking Law, which entrusts the Audit Bureau with auditing the Central Bank’s accounts, and considering that the Bureau had previously approved Deloitte’s auditing of the Central Bank’s accounts in Tripoli and Benghazi, he requested approval to proceed with contracting one of the specialized companies. This would enable the implementation of the required regulatory framework under optimal conditions for the benefit of the Central Bank and Libya as a whole. It would also ensure continued engagement with the Federal Reserve in line with transparency and international compliance requirements. The Governor pledged to update the Audit Bureau on any further developments in this matter.

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Exclusive: Al-Yaqeen Bank Operates Normally, Resumes Services with Growing Momentum, and Outlines Plans for 2025

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Esam Hamza, the Director of the General Manager’s Office at Al-Yaqeen Bank, announced that the bank is operating smoothly and at an accelerated pace in the final quarter of 2024.

Mr. Hamza emphasized that all products and services were fully reinstated in October, in line with the directives and circulars from the Central Bank of Libya. He highlighted that the bank continues to offer high-quality electronic services designed to save time and effort for both individual and corporate customers.

Looking ahead, Hamza noted that 2025 will be a landmark year for the bank, as it prepares to roll out a new range of advanced electronic services and self-service machines. These innovations will enable customers to access most services without the need for paperwork or direct assistance from bank staff.

Misbah Al-Akari: “Under These Conditions, the Liquidity Problem Will Be Fully Resolved by 2025”

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Former member of the Central Bank of Libya’s Exchange Rate Committee, Misbah Al-Akari, stated: “The liquidity problem will be fully resolved by 2025 provided that all stakeholders (citizens, the private sector, and government entities) commit to using alternative payment tools, which have already become widely available and are expected to grow even further in 2025. This will be supported by additional incentives, such as significantly reducing fees and enabling citizens to use up to 60% of their salaries via these tools when due.“

Al-Akari added: “When everyone commits to adopting this modern approach to transactions, the long queues of humiliation will become a thing of the past. These tools will ensure fairness, eliminate favoritism in cash withdrawals, and curb the financing of currency speculators, which has led to a 35% discrepancy in the Libyan dinar’s exchange rate on the investment side.“

Clarifying the steps for implementing these modern tools, Al-Akari explained: “Activating the unrestricted Mudarabah (Islamic finance product) will allow commercial banks to invest their excess funds with the Central Bank, increasing their revenues and enabling them to further reduce fees for their clients. Additionally, this product will provide commercial banks the opportunity to open investment accounts and restricted Mudarabah products for their customers, creating an investment-friendly environment. Citizens and business owners will be able to utilize such products to grow their funds. These investments will have significant positive effects not only for the investors themselves but also for the Libyan economy as a whole. Moreover, these investments will help absorb a considerable portion of the money supply, the primary driver of foreign currency price increases.“

Al-Akari further noted that by 2025, after mitigating and eventually resolving the liquidity problem and expanding electronic services to reduce congestion at banks, the banks will be well-positioned to return to their fundamental role as financial intermediaries. They will then be able to offer loans and facilities for both small and large-scale projects, contributing to greater diversification of the Libyan economy through these financial tools.

The insistence of the Central Bank of Libya on the shift to electronic transactions, which is supported by all experts and specialists in this field, is due to the following reasons:

  1. Electronic payment tools directly eliminate the need for paper currency except in limited contexts.
  2. This transformation reduces overcrowding at banks.
  3. It enables banking services to be accessed from home or the office without visiting a bank.
  4. It puts an end to corruption associated with cash withdrawal operations.
  5. It provides statistical data that can be used for studies relevant to the national economy.

Al-Akari: Causes and Solutions Regarding the Circulation of Over 70 Billion Dinars in Cash Outside the Banking System

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The economic expert, Misbah Al-Akari, wrote an article in which he stated: “An amount of cash exceeding 70 billion Libyan dinars is circulating in the local market outside the banking system. This massive amount has become subject to trading in a very peculiar phenomenon referred to as “burning.”

The rise in government spending, which surpassed 84 billion dinars—of which 57 billion is allocated to salaries—has necessitated the availability of rapid payment tools to avoid further financial complications, including the ongoing liquidity issue. Addressing this challenge requires introducing the payment tools available in the Libyan banking system, which include:

  • RTGS (Real-Time Gross Settlement) system: Allows transferring unlimited amounts between customer accounts for transactions exceeding 10,000 dinars.
  • ACH (Automated Clearing House) system: Functions similarly to RTGS but is used for transactions below 10,000 dinars.
  • Certified checks: Up to 250,000 dinars.
  • Electronic and traditional checks: Electronic checks are preferred due to their fast clearance (within 24 hours), while traditional checks are being phased out.
  • Internal transfers within the same branch: Upon customer request.
  • Electronic payment methods.
  • Bank cards: Issued by Libyan banks, usable at ATMs and POS devices. With the activation of the Off-US service, all bank cards can be used across different banks’ ATMs and POS devices.
  • Banking apps: Available at all banks, offering various services such as money transfers, balance checks, transaction history, and card purchases.
  • LY PAY and ONE PAY services: These allow money transfers between customer accounts across banks.

The Central Bank of Libya reported the following results for these payment tools:

  • Number of checks: 2,890,587 checks amounting to 96 billion dinars.
  • Bank cards: 4,754,518 cards with total transactions worth 19.9 billion dinars.
  • App subscribers: 3,111,952 users generating transactions valued at 84.9 billion dinars.
  • POS devices: 72,769 devices.

A total of 121 million electronic transactions were conducted, amounting to 104.9 billion dinars. Meanwhile, cash distribution this year reached 59 billion dinars.

From these figures, it is evident that the solution to the liquidity problem lies in gradually transitioning to alternative payment tools, as detailed above. This would reduce dependence on cash. Currently, cash withdrawn from banks is spent in retail stores and does not return to the banking system. Instead, it becomes a traded commodity, often resold to citizens at a markup of up to 35%.

Despite the governor’s directives for commercial banks to reduce fees to 1–1.5%, Libyan citizens still complain about high fees. This is attributed to clear exploitation by some retailers and non-compliance by certain banks with these instructions.

We urge the Banking Supervision Department to monitor the issue of fees and call on relevant authorities to address the exploitation of excessive fees by some merchants. Strict enforcement can help support this strategic transition to alternative payment methods.”