Tag: central bank

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 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.

Our source has exclusively obtained a circular issued by the Central Bank of Libya to banks and the Transactions Company regarding the amendment of transfer ceilings between banks operating in Libya for the instant payment service.

For transfers between individuals, the ceiling per transaction is set at 300,000 dinars, with a maximum limit of 500,000, a weekly movement ceiling of 2 million, and a monthly ceiling of 4 million.

According to the Central Bank, for purchases from an individual to a merchant or companies, the limit per single transaction is 300,000, the daily limit is 1 million, the weekly limit is 5 million, and the monthly limit is 10 million.

For transfers between merchants and companies, the limit is 3 million per single transaction, 10 million daily, 40 million weekly, and 50 million monthly.

Our source has obtained a decision by the Central Bank of Libya regarding the issuance of a circular to banks to extend working hours until 5:30 PM, starting tomorrow, Wednesday, until Monday, February 16. The move aims to give citizens the opportunity to withdraw cash from their accounts, with the necessity of informing the public about the procedures adopted for the distribution of liquidity.

The statement added that bank branches will also be subject to inspection teams, and banks that violate these instructions will bear full legal responsibility, with the strictest penalties to be imposed against them.

The Central Bank of Libya exclusively confirmed to our source that speculation on the US dollar will not endure. It stated that the exchange companies’ system is operating very well and that communication is ongoing with banks and companies to clarify certain procedures. A large proportion of bank customers have received the notification for the disbursement of USD 2,000.

It added that the Central Bank is covering the amounts reserved through the system. As for letters of credit, banks began today uploading new credits to the Central Bank’s credit system, with approximately USD 700 million approved, which will be referred to banks to request final coverage.

The Central Bank of Libya exclusively revealed to our source that the personal purposes system has officially gone live as of today, with an excellent situation involving exchange companies. Reservations for personal purposes have begun in earnest, with more than $14 million already reserved. Exchange companies offered competitive rates not exceeding 7.5 dinars per dollar, with immediate processing.

The Central Bank stated that it will clarify certain points regarding the mechanism between exchange companies and banks tomorrow, in order to enable direct card loading between exchange companies and banks.

The Central Bank added that the first day confirms the success of the mechanism and the system. “Today we can say that we have exchange companies that have effectively launched operations and are licensed. Praise be to God, we may need a few days to get accustomed to this system, and it will strengthen cash sales, which will be coming soon.”

The Central Bank further confirmed to Sada that citizens can now buy dollars via transfers at a cheaper rate than cash, putting an end to speculation through checks and transfers. Additional procedures will be introduced to facilitate operations, with the initial goal being the launch of the service and the start of a long-awaited project that has been anticipated for decades.

A number of analysts and market influencers believe that the Central Bank of Libya’s decision to activate the sale of foreign currency through exchange offices, despite its importance, still requires deeper institutional handling to ensure its success and to avoid repeating past failures.

Analysts stress that the core problem does not lie in the exchange offices themselves, but rather in flaws within the current financial cycle related to foreign-currency cards, which has produced a network of intermediaries and high commissions. This has led to a large portion of foreign currency leaving the official banking system and has created a favorable environment for the parallel market to flourish.

According to the analysts, citizens have become compelled to obtain their allocations through informal channels and at high commissions, amid weak oversight and multiple layers of intermediation. This has negatively affected market transparency and undermined the Central Bank’s ability to control foreign-currency flows.

The analysts warn that handing over the foreign-currency sales file to exchange offices in its current form carries real risks, most notably weak operational readiness in many cities, a lack of qualified staff, high costs, and low confidence in the continuity of monetary policies. These factors could lead to the failure of the experiment at the first wave of complaints or violations.

They argue that a practical solution lies in fully reengineering the financial cycle by enabling citizens to reserve their allocations electronically and choose the exchange office, while ensuring that all transfers between banks, exchange offices, and companies take place within the official banking system and with clear commissions. This would keep foreign currency within the banking system, reduce the role of the parallel market, and separate citizens from speculative activity.

Analysts also emphasize that addressing the parallel market cannot be achieved without a direct and effective role for the Central Bank of Libya in managing the exchange rate. This includes acting as an active market regulator, pricing the dollar for exchange offices at a rate close to the parallel market while imposing a variable tax whose revenues return to the state treasury, and injecting currency according to supply-and-demand mechanisms to curb price spikes and speculation.

They conclude by stressing that current calls to restrict imports exclusively to full bank payments are impractical, given limited payment instruments and weak operational readiness of banks. Eliminating the parallel market, they assert, cannot be achieved through administrative decisions alone, but rather by addressing its real causes, conducting a precise assessment of the financial cycle, and organizing the roles of banks and exchange offices within a clear and stable monetary policy.