Our source has obtained the Central Bank of Libya’s correspondence instructing banks to extend working hours until 5:30 PM, starting from Sunday, December 14 to Thursday, December 18, in order to give citizens more time for cash withdrawals.
The directives also include increasing the number of cash distribution counters and fully refilling all ATMs with liquidity.
During the Banking Sector Forum, the Governor of the Central Bank of Libya launched three strategic initiatives, including the formation of a national advisory team for financial and economic reform made up of Libyan banking experts. This team will operate under the Governor’s direct supervision to provide technical advice and shape future financial and economic policies, ensuring that decisions are grounded in scientific principles and national expertise.
The Governor stated:
“As part of our efforts to address liquidity challenges and enhance financial inclusion, we announce our full support for the ‘Zero Cash 100’ initiative, which aims to accelerate digital transformation by guiding 100 major companies toward ending cash transactions and fully transitioning to electronic payments, while providing the necessary incentives to ensure the success of this important step.”
He added that the initiative aligns with the Central Bank of Libya’s National Financial Inclusion Strategy 2025–2029, which aims to provide secure, accessible, and user-friendly financial services for all through digitalization and the development of an integrated digital financial infrastructure—supporting the growth of a modern digital economy capable of promoting stability and development in Libya.
The Governor continued:
“We have approved the launch of the Banking Performance Excellence Award for individuals and institutions, under the technical supervision of the Research and Statistics Department and in cooperation with this forum, in recognition of professional excellence and innovation within the banking sector.”
He concluded by announcing:
“It has been decided that the next edition of this award will be named after the esteemed banker Abdullah Al-Saudi, in honor of his distinguished career and in recognition of his significant contributions to the development of the Libyan and Arab banking sectors.”
The Central Bank of Libya revealed exclusively to our source that December has recorded the highest foreign currency sales compared to all previous months. This comes as banks prepare to secure goods for Ramadan and for the first quarter of 2026, through letters of credit, transfers, and personal-use allocations.
The Bank added that around $2 billion has already been sold as of today, December 7, equivalent to 13 billion dinars in just seven days. An additional $1.5 billion has been approved and is ready for sale—equivalent to 10 billion dinars—and the Central Bank continues issuing new approvals at a rapid pace.
It further stated that the current turmoil in the currency market is the result of speculation by a small group that refuses to comply with anti–money laundering regulations and the restrictions on fake letters of credit. Their aim, the Bank says, is to drive up the exchange rate to pressure the Central Bank into lifting the strict measures that have sidelined currency speculators and corruption networks.
The economic expert Sulaiman Al-Shahoumi wrote:
“Every time the monthly statement of the Central Bank of Libya is released, it becomes an occasion for logical and rational discussion among experts. It is also an opportunity and rich media material to explore and analyze our reality and its causes, as well as the appropriate opinions and solutions in the face of a situation that is easy to explain, yet extremely difficult to mitigate its consequences or heal its wounds.”
Despite being the only document that informs us monthly about government spending, revenues, and the use of foreign currency, the Central Bank’s monthly statement increases ambiguity and confusion. It takes us into side paths, far from its core role—one that seems to be facing greater challenges with each passing day.
In reality, given its function, law, and primary role in the economy, the Central Bank is responsible for presenting the economic situation with its various dimensions—traditionally provided through its quarterly bulletin—and for measuring economic stability. It must also show how it uses monetary policy tools to maintain stability based on key indicators, including banking indicators such as money flows, money supply, the activity of the money market between banks and the Central Bank, interest rates and their movements based on financial and economic conditions. Instead, the Central Bank has shifted into a publisher of spending and revenue data, presenting this information however it chooses.
The latest monthly statement indicates a decline in oil-sales revenues transferred during recent months. This leaves the reader in significant confusion and concern.
Is this because some revenues are being withheld and not transferred to the Central Bank? Who would benefit from doing so? Why is this ambiguity not clarified, especially through reconciliation with the National Oil Corporation—which has stopped publishing data on export volumes and values—deepening this uncertainty? Or is the decline simply due to a global drop in oil prices, which seems more likely? In either case, proper justification must be provided.
There is no doubt that presenting reports of national economic relevance requires coordination and harmonization among economic institutions in both content and timing—whether the National Oil Corporation, the Ministry of Finance, the Audit Bureau, or the Central Bank.
As for the issue of declining and utilizing Central Bank reserves to cover the gap between revenues and foreign-currency demand—and the fact that reserve values have increased overall due to rising gold prices—this does not realistically align with basic principles of caution when dealing with global price fluctuations. It also reveals a change in how the Central Bank calculates its reserves, which for decades did not revalue gold holdings or investments based on market prices. This raises a question: Why has the Central Bank not disclosed the reasons behind this cautious change in valuation methodology? And is it seeking to inflate reserve assets to send a certain message about the sustainability of reserves now that global gold prices have risen?
Meanwhile, the report avoids addressing the extremely difficult reality of cash shortages and the soaring demand for foreign currency—issues the Central Bank has found itself trapped in due to the disruption of its ability to manage monetary policy smoothly and professionally.
The monthly report notes a surplus between government revenues and expenditures. However, this also sends a very unclear signal because it only accounts for the spending of one of the two governments. The Central Bank did not provide—even minimally—a monthly breakdown of how much it finances the other government, leaving us without a clear understanding. From time to time, it only informs us of the increasing public debt that the Central Bank alone continues to finance.
There is no dispute that the Central Bank of Libya operates under harsh and chaotic conditions, but that does not exempt it from presenting all information transparently and in a timely manner.
The Central Bank of Libya has revealed its correspondence sent to general managers of several oil companies — including Libya Oil Joint Venture, Golden Palm for Oil Services, International Trust for Oil Services, and Alrahila Company — instructing all stations to use electronic payment methods instead of cash transactions.
The Bank emphasized the importance of this measure, noting the benefits it brings to the national economy and to citizens through the use of electronic payment systems.
The Central Bank also issued multiple circulars on developing electronic payment channels, including one to Tadawul Company regarding the launch of instant payment via point-of-sale devices using QR codes; as well as to the General Syndicate of Bakeries and Mills, and the Municipal Guard, requiring bakeries to comply and conducting inspection campaigns to ensure that shops adhere to instant payment methods.In addition, the Bank instructed commercial banks to launch instant payment services using QR technology.
The Central Bank further requested its affiliated departments to submit weekly statistics on lypay and onpay services.
The Central Bank of Libya announced on Thursday that total revenues from January to November of the current year reached 115.3 billion dinars, compared to expenditures of 107.5 billion, resulting in a surplus of 7.9 billion dinars. Meanwhile, the foreign-currency deficit amounted to 7.8 billion dollars, which was covered through returns from the Central Bank’s investments, deposits, bond portfolios, and gold. Foreign assets also recorded gains of 2.2 billion dollars, bringing total assets to 99.4 billion dollars.
The statement clarified that revenues from the fee imposed on foreign-currency sales amounted to 21.4 billion dinars. The Bank distributed liquidity worth 94 billion dinars from the beginning of 2025 until the end of November. Salaries reached 61.2 billion dinars, operating expenses 5.8 billion, development spending 7.2 billion, and subsidies 33.3 billion dinars.
The Central Bank added that total uses of foreign-currency sales reached 28.5 billion dollars, including letters of credit worth 14.1 billion, personal transfers of 7.5 billion, wire transfers of 696 million dollars, and small-trader card payments of 120 million. It revealed that 317.6 million dollars were spent on salaries of employees abroad, 120.8 million on allowances for students studying overseas, 93.3 million on overseas medical treatment, 584.6 million for the National Oil Corporation, 2.6 billion for fuel, 253.2 million for medical supplies, 683.3 million for electricity, and more than one billion dollars in transfers for other entities.
Regarding expenditures for the country’s four main political bodies—the Government of National Unity, the Presidential Council, the House of Representatives, and the High Council of State—the statement indicated that total spending reached 5.7 billion dinars. Spending by the Government of National Unity’s Cabinet alone amounted to 218.9 million dinars, the House of Representatives spent 74.7 million, the Presidential Council 48.6 million, and the High Council of State 44.4 million dinars.
The Central Bank’s statement also disclosed expenditures for ministries under the Government of National Unity:
The Central Bank of Libya confirmed exclusively to our source that cash will be available in all branches of commercial banks starting from December 14.
It added that today it completed the transfer of November salaries to their recipients through the instant salary system, and that salaries for the remaining sectors will be transferred through the portfolios mechanism during the coming week.
According to the Central Bank, cash will be available starting the following Sunday due to concerns that it may leak through channels not designated for customers who receive their salaries monthly. The Libyan banking sector encourages all citizens to use electronic payment tools and methods, as they are considered the best and most sustainable solution, supporting digital transformation towards a fully integrated digital economy.
The Central Bank of Libya revealed exclusively to our source that after injecting $1.5 billion for letters of credit today, it will settle the remaining value of merchant and personal-use cards amounting to $400 million.
The Central Bank had stated to Sada yesterday evening that more than $1.5 billion was sold to banks to cover letters of credit on Monday and Tuesday, confirming that coverage will continue and that all systems are operating normally.
The Central Bank also confirmed that what is happening in the market is speculation aimed at pressuring for the cancellation of the review procedures for letters of credit—procedures that affected currency smugglers and fraudulent credits.
Economic expert Mohamed Al-Sanusi told our source in an exclusive statement that the rise of the dollar in the parallel market is expected — and that we may witness new, unprecedented levels if the Central Bank continues its irrational policies and continues “selling illusions to the public.”
He added: “We all remember how the Central Bank misled people into believing the dollar would drop below 7 dinars after withdrawing the 50- and 20-dinar banknotes.”
He continued: “It is very clear that the Central Bank allocates a monthly quota of foreign currency to sell in the form of letters of credit and personal transfers. For this reason, at the start of every month it approves LCs and personal purposes, then stops halfway through the month and waits for the next month to approve requests again.”
He added: “The Central Bank is repeating the same mistakes of the previous governor, who spent more than five years watching the gap between the official rate and the black-market rate widen without taking action — until it was far too late.”
According to Al-Sanusi: The Central Bank must take urgent steps before year-end. First, it must provide sufficient cash liquidity to banks to replace the liquidity withdrawn through the removal of the 50-, 20-, and 5-dinar notes. Second, if no budget is approved for next year with spending lower than expected revenue, then the Central Bank will have no option but to cancel the tax and adjust the exchange rate to the level that allows it to meet demand for foreign currency and eliminate the black-market gap.
He added: “If the Central Bank continues watching the gap grow between the official and black-market rates, moving extremely slowly, and believing that divided political actors will suddenly agree and corruption will decrease and all revenues will be transferred — the Bank will soon be unable to meet demand. If the solution now is a 20% devaluation of the dinar, then delaying action will turn that into a 50% devaluation — and with every delay the cost will be greater.”
He concluded: “For more than a year, the Governor has tried his best to maintain the value of the dinar and give time for divided actors to end the split, unify spending, and transfer all revenues to the Central Bank. But I believe this is enough — he must now act and adjust the exchange rate to protect reserves, which belong to the current and future generations. Draining them will leave us at the mercy of international institutions.”
The Central Bank of Libya told our source exclusively that more than $1.5 billion was sold to banks on Monday and Tuesday to cover letters of credit, with coverage continuing and all systems operating normally.
The Bank confirmed that what is happening in the market is pure speculation intended to pressure authorities into canceling audit procedures on letters of credit—procedures that have harmed currency smugglers and fake credit applicants.
The Central Bank of Libya revealed to our source exclusively that the salaries for November will be paid starting tomorrow, Wednesday, through the “Instant Salary” system.
Economic expert Saber Al-Wahesh told our source in an exclusive statement that the US dollar reaching 8 dinars occurred despite the Central Bank of Libya beginning to settle letters of credit and personal-use allowances. He attributed this rise to a combination of overlapping factors.
Al-Wahesh explained that the Central Bank’s recent measures—particularly its stricter auditing of letters of credit, including reviewing commodity prices and quantities—have reduced the inflow of foreign currency into the market, resulting in a clear decline in supply.
He added that the political division and the lack of clarity in fiscal policy have created uncertainty among market participants, pushing traders and citizens to hedge by holding on to dollars as a store of value, which has increased the demand for foreign currency.
Al-Wahesh pointed out that the expansion of government spending outside traditional financial channels has also contributed to rising pressure on the exchange rate, amid the absence of clear fiscal controls.
He also noted that the large volume of liquidity accumulated in bank accounts—seeking entry into the market—has raised demand for foreign currency, particularly through transactions conducted via bank checks.
Al-Wahesh concluded by stressing that these combined factors have created a wide gap between supply and demand, making the impact of Central Bank measures slow compared to the magnitude of real pressures, and thereby allowing the dollar to continue rising despite the start of settling letters of credit.
Economic expert Mohammed Al-Barghouti confirmed in an exclusive statement to our source that the continued rise in the dollar’s exchange rate comes despite the Central Bank of Libya injecting large amounts of foreign currency through letters of credit and personal-use cards, explaining that market demand remains high and significantly exceeds the available supply.
Al-Barghouti clarified that the reasons behind this rise are multiple, but the most prominent are centered around three main factors. The first is the delay in executing letters of credit and bank cards, as the waiting period for many pending operations has exceeded more than a month without implementation. He pointed out that this delay is linked to oil revenues not being deposited into the Central Bank’s accounts on time, in addition to the auditing and review procedures carried out by K2 on foreign currency movements internally and externally, which has slowed down the execution cycle.
He also noted that seasonal demand in preparation for the months of Ramadan and Eid has contributed to a surge in foreign-currency demand, as traders intensified import operations to cover market needs during this period. This created additional pressure, while the amounts injected by the Central Bank were not sufficient to balance this increase in demand.
Al-Barghouti added that the widening gap between the official exchange rate and the parallel-market rate has encouraged speculation and rapid conversion from the dinar to the dollar in pursuit of profit. This made foreign-currency injections through official channels insufficient on their own to curb the market as long as speculation remains profitable.
The economic expert concluded by emphasizing that these three factors—the delay in execution, the high seasonal demand, and the price gap—constitute the main drivers behind the continued rise in the exchange rate. He stressed that without simultaneous solutions to these underlying causes, the dollar will continue trending upward regardless of how much foreign currency the Central Bank injects.
Several traders confirmed to our source that they received messages from the Central Bank of Libya approving their requests for personal purposes and letters of credit.
This confirms the earlier report by the newspaper on the Central Bank’s commencement of settling letters of credit and personal purposes, as well as selling currency to banks.
The Central Bank of Libya exclusively told our source that it has begun settling letters of credit and personal purposes, selling currency to banks, and granting new approvals as announced in the past period.
The Central Bank had previously informed our source about the Board of Directors’ decision to inject more than $2 billion to cover existing letters of credit and banks’ personal purposes, starting next Monday, the beginning of December.
This is to complete settlements before the end of the year and to provide goods for the first quarter of the next year before the arrival of Ramadan.
