Tag: central bank

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.

Our source obtained, exclusively, a circular from the Central Bank of Libya addressed to commercial banks, stating that the prevailing exchange rate of the Libyan dinar is the rate determined by the decision of the Bank’s Board of Directors, at approximately 6.36.

According to the Central Bank, the fee imposed on foreign currency does not apply to requests submitted through the dedicated coverage request system prepared for that purpose.

The Central Bank of Libya exclusively revealed to our source that the total amount sold today for personal purposes by the end of the working day reached $300 million, as submitted by commercial banks during the day.

The Bank clarified that the sale of the full amount of $600 million will be completed tomorrow.

Banking sources revealed, in an exclusive statement to our source, that the measures taken by the Central Bank of Libya over the past year fall within its efforts to strengthen control over the informal cash market, which has expanded noticeably in recent years. This comes alongside regulating the work of exchange companies and offices through the mechanism recently announced by the Bank, which ensures the Central Bank’s gradual success in bringing the black market under control.

The sources added that completing the reform path requires coordination and support from the oil sector, as well as from the Ministries of Economy and Finance in both the east and west, in a manner that contributes to achieving the objectives of these measures more comprehensively.

Our source has obtained a circular issued by the Central Bank of Libya to exchange companies and exchange offices outlining the regulations for selling foreign currency to individuals, setting a cap of 70% for purchases carried out through these companies.

The circular stipulates a commitment to sell up to $8,000 per year, excluding the amounts allocated for specific purposes: $2,000 for personal purposes, $10,000 for medical treatment, $7,500 for study, and $3,000 per year for foreign workers, provided this does not exceed $300 per month for foreigners working in both the public and private sectors. No foreign currency transaction may be carried out outside the unified electronic platform.

The maximum profit margin from selling foreign currency is set at 4%, added to the purchase price from the Central Bank of Libya. The selling price to customers shall reflect a 4% margin for cash payments, and a 2.5% margin for payments made via cheques, bank transfers, and electronic payment methods.

The Central Bank of Libya exclusively informed Sada Economic newspaper about the sale rate for personal purposes and pending merchant cards, which will be executed tomorrow.

The total value amounts to 600 million dollars at a rate not exceeding 6.23 dinars per dollar.

The Central Bank of Libya confirmed exclusively in a statement to our source that all necessary arrangements are ready for the launch of the planned package of actual reform measures, which will begin to be implemented in practice during this week.

• The steps of the plan will include the following executive axes:

• Launch of work under the new regulations: On Sunday morning, the new operational regulations will be circulated to exchange companies and offices, in preparation for granting them licenses to operate under the new system.

• Resumption of the personal purposes system: The bank will immediately resume processing pending reservation requests since December 2025, estimated at a total value of approximately 600 million US dollars.

According to the Central Bank, after completing this batch, companies will continue providing personal purpose allocations for 2026 according to the approved ceilings:

· $2,000 per individual (cash, transfer, or card top-up),

In addition to an extra $8,000 for those who wish.

· $7,500 for study purposes.

· $10,000 for medical treatment purposes.

It added: The resumption of accepting and covering letters of credit requests under new regulations that limit the smuggling and leakage of goods outside the country, ensure supplying the Libyan market with goods and citizens’ needs, while the Ministry of Economy and government bodies commit to controlling prices.

It continued: The official start of exchange companies’ operations will be next Monday, where exchange companies and offices will begin operating in an organized manner under the new regulations, and foreign workers will be allowed to buy and sell under the law.

It added: Foreign cash liquidity inflow — As part of enhancing monetary stability, the first monthly batch of US dollar cash is scheduled to arrive at the Central Bank of Libya’s vaults during February 2026, valued at $600 million, with similar monthly batches expected to continue thereafter.

According to the Central Bank: In response to what has been circulated recently, sources revealed that the Central Bank of Libya’s total foreign assets reached a record level exceeding $100 billion during January 2026, confirming the strength of the financial position and refuting any inaccurate claims about the random use of reserves.

The Central Bank of Libya exclusively revealed to our source that starting next Monday, operations will resume under the personal purposes system. Outstanding reservations from 2025 (December) will be covered within a ceiling of USD 600 million. Thereafter, exchange companies will continue selling allocations for personal purposes for 2026 at USD 2,000, provided either in cash or via transfer, in addition to USD 8,000 for medical treatment and study purposes.

The Central Bank confirmed that on Monday, exchange companies and offices that have been operating their systems on a trial basis will officially begin operations.

The Central Bank added that in February, the first batch of cash dollars—estimated at USD 600 million—will arrive, with the same amount to be delivered monthly thereafter to the Central Bank of Libya’s vaults.

The Central Bank further stated that taxes on food and essential goods, medicines, animal feed, infant formula, diapers, and other items have been abolished, meaning a zero tax rate.

The statement concluded by noting that an agreement has been reached to support goods ahead of the holy month of Ramadan at reduced and subsidized prices through the Ministries of Economy in both western and eastern regions.

The Central Bank of Libya exclusively informed our source that, for the first time in more than 15 years, it has obtained approval from international authorities to import $600 million in cash monthly, thanks to efforts by the Governor, reflecting the international community’s confidence in the bank.

The bank also announced the imminent resumption of the personal-use dollar system, with an initial allocation of $2,000 provided directly by the Central Bank of Libya, available for cash withdrawal through banks and licensed exchange companies and offices.

The Central Bank confirmed that licensed exchange offices and companies are now technically ready to operate under the system, with the bank supplying them with cash dollars.

For those wishing to obtain foreign currency beyond personal-use, medical, or educational allocations, purchases will be allowed through licensed exchange offices with an annual limit of $8,000 to $10,000, either in cash or via card loading.

The Central Bank emphasized that all regulations governing exchange activity will be enforced according to anti-money laundering and counter-terrorism financing standards, warning that any violations could lead to strict measures, including license revocation and immediate closure, in coordination with relevant state authorities.

Finally, the bank stated that exchange companies will be granted SWIFT transfers for small traders from accounts funded with foreign currency either from the Central Bank or through currency purchases from individuals, companies, and non-residents.

The Central Bank of Libya revealed to our source a document outlining how exchange companies operate under its supervision. The document aims to clarify the mechanism for using the platform and to regulate procedures for executing daily operations after obtaining final authorization from the Central Bank. It also explains how exchange companies operate, particularly with regard to individuals’ foreign currency entitlements for personal purposes.

The Central Bank explained that the document includes the following definitions:

1. Central Bank: The Central Bank of Libya, as the supervisory and regulatory authority overseeing the exchange companies’ platform and issuing the rules and instructions governing its operation.
2. Platform: The electronic exchange companies’ platform approved by the Central Bank of Libya, designated for executing and managing foreign currency buying and selling operations and monitoring related transactions.
3. Exchange Company: Any company licensed by the Central Bank of Libya to conduct exchange activities and approved to operate on the platform in accordance with established procedures.
4. Login Credentials: Electronic access credentials issued by the Central Bank of Libya that authorize the exchange company or its approved user to use the platform according to defined permissions.
5. Operations: All financial transactions executed through the platform, including, in particular, cash buying and selling of foreign currency, transfers, or any other methods approved by the Central Bank of Libya.
6. Instructions and Regulations: All laws, regulations, circulars, and instructions issued by the Central Bank of Libya related to regulating exchange activities and use of the platform.

The Central Bank added that the system structure consists of the following main components:

1. Foreign Currency Booking Platform (FCMS): A central platform dedicated to individuals, enabling citizens to submit requests to reserve foreign currency for personal purposes. Requests are submitted through approved exchange companies linked to the bank holding the citizen’s account. The platform is connected to exchange companies and commercial banks to execute approved requests and is supervised, regulated, and operated by the Central Bank of Libya.
2. Commercial Banks Platform (FCMS Banks): A platform dedicated to commercial banks, enabling them to review daily contracts received from exchange companies, approve or reject contracts in accordance with approved regulations, monitor execution status, and access operational reports. It serves as an executive channel for banks within the central system and is supervised, regulated, and operated by the Central Bank of Libya.

The Central Bank also defined the Exchange Houses Platform (FX House Platform) as an operational platform dedicated to exchange companies, enabling them to create and manage daily contracts linked to the approved exchange rate, execute operations resulting from approved contracts, receive and execute booking requests issued from the FCMS platform, and track the status of contracts and requests. The platform serves as an official integration channel with commercial banks and the central system and is supervised, regulated, and operated by the Central Bank of Libya.

The Central Bank clarified that exchange companies carry out multiple activities, including selling foreign currency in cash to citizens through the system and executing exchange operations related to citizens’ personal-purpose reservations requested via the platform.

Scope and Role of the System:
The current role of the system includes regulating cash buying and selling of foreign currency conducted through the Central Bank, organizing daily contracts linked to the approved exchange rate, managing and executing operations resulting from approved citizen reservations, and enabling regulatory authorities to monitor and audit executed transactions.

Operating Mechanism:
Regarding registration and platform access, each company must request the appointment of a system administrator (Admin) specific to the company, subject to the following conditions: the request must be signed by the company’s general manager, accompanied by the responsible person’s details (copy of national ID, copy of passport, phone number), and include a non-disclosure agreement prepared by the Central Bank of Libya and signed by the responsible person.

Daily Operations:

• (Time Window 1 – Exchange Companies): After the Central Bank uploads the exchange rate, the company enters a new foreign currency contract specifying the amount to be sold and the selling price, provided it does not exceed the permitted margin from the official exchange rate. Companies may enter multiple contracts, provided their total value does not exceed the Libyan dinar balance available in the company’s account at the commercial bank.
• (Time Window 2 – Commercial Banks): The commercial bank reserves the Libyan dinar value of the contracts in the company’s account and responds to the Central Bank accordingly.
• (Time Window 3 – Customers): Customers log into the Central Bank’s platform and request the amount for personal purposes, choosing the method of obtaining foreign currency.
  • Option One: Cash / Fast Transfers: All companies offering fast transfer services are displayed, sorted from the lowest to the highest price. Once the full contract value is reserved, the company is removed from the list.
  • Option Two: Bank Deposit / Card Top-Up: All companies where the customer has a matching account in the same bank as the company are displayed. Once the full contract value is reserved, the company is removed from the list.
• (Time Window 3 – Companies): Companies receive all customer requests and collect the Libyan dinar value from customers either in cash (within a Central Bank–specified percentage), by bank transfer, or by cheque (within a specified percentage), then approve the customer’s request on the Central Bank’s platform.
• (Time Window 4 – Central Bank of Libya): The Central Bank sells the approved reserved foreign currency amounts to commercial banks, forwards a list of foreign currency amounts due to each company, rejects remaining contract values not requested for reservation, and rejects reservations not responded to by companies.
• (Time Window 5 – Commercial Banks): Commercial banks deposit the foreign currency amounts into companies’ accounts and notify them accordingly.
• (Time Window 6 – Companies): Companies execute the approved reservations for customers.