Tag: central bank

The Central Bank of Libya exclusively revealed to our source that it began today, Wednesday, April 1, resuming the sale of foreign currency to cover all approved transfer requests and letters of credit, while also continuing sales for personal purposes. Working hours on the system have been extended.

The Bank confirmed that operations are proceeding at a good pace, with extended hours through Thursday to complete the provision of $2 billion. It noted that claims about a halt or slowdown in the system are baseless, describing them as attempts by some currency traders to influence the exchange rate in the parallel market.

It added that it will continue selling $1 billion for personal purposes, and that an additional $1 billion in cash sales will begin in the coming days.

The Central Bank explained that its plan is progressing correctly, having injected $2 billion to cover letters of credit and personal demand, while preparations for an additional $1 billion in cash are ongoing. Mechanisms for the cash sale are being finalized by the working team. It expects the parallel market to stabilize at 8.50 LYD per dollar or lower before the launch of the additional cash sales, noting that overall market trends are unlikely to resist the Central Bank’s supply, even if parallel spending continues.

It further stated that, as of now, $1 billion has already been completed across letters of credit, transfers, and personal purposes, with work continuing through today and tomorrow, Thursday.

The Central Bank of Libya exclusively revealed to our source that a meeting has concluded between Governor “Naji Issa,” several commercial bank directors, and the company “Muamalat.” The meeting addressed two main topics: readiness to sell $2 billion for letters of credit and personal purposes starting tomorrow morning.

The meeting also discussed establishing a mechanism for selling foreign currency in cash and preparing an amount of $1 billion in cash to be injected as a first phase.

Our source has obtained a copy of a letter from the Central Bank of Libya addressed to the heads of commercial banks, instructing them to prepare and make the necessary technical arrangements to begin testing and updating their systems and applications. This is to enable the launch of foreign currency transfer services between accounts through the LYPay and ONEPay projects as quickly as possible.

The letter emphasized that the banks’ technical teams must communicate directly with the designated Central Bank officials for any inquiries regarding technical requirements or details:

1. M. Labib Shalabi – LYPay Project
2. M. Mohamed Lyas – ONEPay Project

Given the utmost importance of this matter, the letter stressed that it requires serious attention and will be monitored on a daily basis.

The Central Bank of Libya stated in an exclusive statement to our source that it is working on strengthening liquidity management tools in the economy and containing the money supply through non-traditional instruments.

The Bank added that it intends to introduce a “restricted deposit” instrument in Libyan dinars, which allows depositors to benefit from purchasing foreign currency as an incentive. The proposal involves locking a specified amount in Libyan dinars for one year.

It explained that individuals and companies will be granted, at the end of the year, the right to purchase foreign currency equivalent to 50% to 70% of the deposited amount at the official exchange rate. The funds can then be transferred into a foreign currency account and used or sold through transfers between local bank accounts or for external transactions, in accordance with Central Bank regulations.

The Bank illustrated that, for example, locking 100 million dinars would allow the depositor to purchase foreign currency worth 50 million dinars at the official rate (around $8 million), or up to approximately $11 million at the 70% level—providing access to foreign currency at a lower cost than the black market.

It also noted that there is flexibility to increase this percentage in the future, depending on monetary policy objectives related to controlling the money supply.

Additionally, the Central Bank indicated that this tool could be applied as an incentive for holders of unrestricted investment deposit certificates, granting them the ability to purchase foreign currency from the value of the certificate upon its annual maturity, without violating the governing conditions of these instruments.

Our source has exclusively obtained a letter from the Secretary of the Central Bank’s Board of Directors addressed to the Deputy Governor. According to the correspondence, the committee’s recommendations regarding the assessment of public debt were presented during the Board meeting for Q4, held on June 16, 2025.

The total public debt was estimated at approximately 284.19 billion Libyan dinars.

The Secretary also called for coordination with Parliament to issue a law that formally covers and regulates the size of the public debt.

Our source obtained a letter from Central Bank Governor Naji Issa addressed to the Municipal Guard, calling for the enforcement of mandatory use of point-of-sale (POS) machines by all business owners to ensure the expansion of electronic payment services.

The letter added that, within the legal mandate of the Municipal Guard—responsible for monitoring compliance with laws and regulations issued by government entities and preventing violations—it is expected to require businesses to provide and use POS machines to facilitate financial transactions for citizens.

Our source obtained a copy of a directive issued by the Central Bank of Libya to exchange companies, stating that starting Wednesday, 4/1, the bank will begin implementing coverage for pending personal-purpose bookings amounting to $1 billion.

The Central Bank called on all exchange companies and offices to prepare and actively participate in this process by enhancing their readiness and capacity to execute large-scale purchase operations that will help complete the required coverage.

The bank emphasized that this initiative represents an important opportunity, enabling companies and offices to benefit while contributing to market stability and meeting demand for foreign currency.

It added that all parties are encouraged to seize this opportunity and work with a spirit of cooperation and responsibility to ensure successful and timely execution.

The Central Bank concluded by confirming that the system will be fully ready and operating efficiently starting April 1, 2026, and that companies and offices will be closely monitored to identify any shortcomings in account funding or delays in executing people bookings.

The Central Bank of Libya revealed exclusively to our source that it signed a new contract yesterday with a printing company worth 30 billion Libyan dinars in the 20-dinar denomination, in addition to previous contracts worth 60 billion currently being supplied. The bank expects total incoming currency this year to reach 70 billion dinars, with the possibility of introducing a new 50-dinar denomination.

According to the Central Bank, this comes after the success of its electronic payment development plan and efforts to withdraw counterfeit banknotes that had been putting additional pressure on the dollar exchange rate. It also confirmed that the dollar exchange rate through checks and transfers will soon become cheaper than cash.

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Former Central Bank board member “Muraaj Ghaith” stated that claims by former governor “Seddiq Al-Kabeer” about a ban on supplying cash dollars to Libya are incorrect, emphasizing that no entity actually prevents this. He explained that while the United States may impose restrictions on dollar transactions, there is nothing preventing the purchase and physical supply of dollars, and this is certain.

Ghaith added that the United Nations, the International Monetary Fund, and the UN Security Council have no involvement in this matter, stressing that the narrative about banning dollar supply is entirely fabricated and has already been disproven. He suggested that there may be other unknown factors behind the issue.

He further noted that after proving these claims false and with the Central Bank proceeding to supply cash dollars, this step may somewhat help reduce practices such as fake purchases conducted through fraudulent point-of-sale systems in Libya, where no actual goods are imported. It may also reduce smuggling activities. He explained that, amid corruption, bank cards can be loaded with any amount and used abroad, whereas cash remains limited by physical carrying constraints.

However, Ghaith emphasized that he does not believe supplying cash dollars will solve the black market problem, as those operating in this illegal and unethical market will not be significantly affected. At most, it may create some pressure, but the activity will continue. He stressed that what is needed is monitoring how the dollars are used, not merely selling them.

He concluded by stating that it is illogical for personal allocation expenditures in 2025 to reach around $8 billion, as this would imply that all Libyans are studying, receiving medical treatment, or traveling abroad for tourism—something he described as unrealistic. He called for stopping the drain of foreign currency through measures such as personal allocations, which have effectively become an acquired right.

The Central Bank of Libya confirmed, in a statement to our source, that starting April 1 it will begin injecting $1.5 billion to settle all pending requests, including letters of credit and personal foreign currency allocations, in addition to covering banks’ needs.

The bank explained that it will also continue granting new approvals for letters of credit and personal allocations on a daily basis and at a faster pace, following technical improvements introduced to the system.

The Central Bank noted that this step comes as a result of improved oil revenues, which are expected to reach $3 billion during April. It also indicated that it is preparing regulations and procedures for selling cash dollars, which will be announced later, along with preparing the allocated amounts for sale to citizens.

The Central Bank of Libya revealed to our source that it is studying the preparation of a cash dollar batch worth $1 billion to be injected into the market in one go.

This step aims to achieve full control and permanently shut down the parallel (black) currency market.

The Central Bank of Libya, in a special statement to our source, confirmed that Governor Naji Issa and his team have succeeded in restoring confidence at both the local and international levels in the central bank and the Libyan banking sector.

The bank explained that these efforts resulted in convincing international parties to supply shipments of foreign cash (US dollars and euros) to Libya, noting that the first of these batches arrived today at Mitiga International Airport.

The bank added that shipments will continue consecutively in the coming period, as part of a plan aimed at ensuring a regular monthly flow of foreign currency, which would enhance financial stability and support meeting the needs of the local market.