A statement from the Central Bank disclosed the expenditures of the Ministry of Local Government in the Government of National Unity from the beginning of January until the end of February 2026.
These expenditures amounted to more than 191 million Libyan dinars.
Data from the Central Bank of Libya showed a decrease in oil revenues during the first two months of 2026 compared to 2025. Oil revenues during January and February 2026 amounted to 13.9 billion dinars, while in 2025 they reached 17.7 billion dinars.
The Central Bank also indicated that the foreign currency deficit during just the first two months of 2026 reached 2 billion dollars, with a decline in the value of revenues transferred from the National Oil Corporation, amounting to 1.3 billion dollars in January 2026, and only 705 million dollars in February.
The Central Bank of Libya disclosed that a surplus of 100 million dinars was recorded in the salary expenditures category following the activation of the Salary Instant system.
According to the bank, salary spending during the past year, from January 2025 to February, reached 5.9 billion dinars, while the salary expenditures for the same period this year amounted to 5.8 billion dinars.
The bank also clarified that this surplus was identified after 50% of public sector salaries were integrated into the “Instant Salary” system.
The Central Bank of Libya confirmed in a statement to our source that it has decided to reduce the commission rate on the sale of foreign currency through exchange companies from 4% to 1.5%.
The new structure sets the commission at 1% for cash purchases and 0.5% for purchases made via transfers and electronic payments.
Exclusive sources told our source that banks are continuing to operate until late at night to ensure a smooth and faster process of loading personal-purpose cards.
Banks are currently sending Excel files to exchange companies for approval and processing the loading of personal-purpose cards.
The Central Bank of Libya confirmed exclusively to our source that banks and exchange companies have begun completing the sale of personal-purpose foreign currency to customers, and that procedures are progressing smoothly.
It added that authorization has been granted to purchase all reserved amounts exceeding $600 million, while the booking process for new requests continues as normal.
Banker Misbah Al-Akkari stated that the rise in the dollar was temporary and that it is now steadily declining, adding that the real assessment of this drop will become clear through this week.
Al-Akkari explained that the Central Bank of Libya has found itself caught between two competing governments, each requiring expenditures including salaries, subsidies, operational expenses, and development spending. He noted that both governments are demanding funds without fully committing to collecting sovereign revenues and depositing them into the Central Bank for proper allocation, which has led to very weak sovereign revenues.
He added that revenues from taxes, customs, domestic oil sales, telecommunications, and even key sovereign oil revenues have seen a significant decline, despite improved production and a rise in global oil prices to حوالي $71 per barrel.
Al-Akkari pointed out that it is illogical for oil revenues to reach about $2 billion in February 2025, then drop to $800 million in February 2026, at a time when governments are requesting expenditures estimated at 210 billion dinars, while total revenues do not exceed 130 billion dinars.
He stressed that the Central Bank of Libya is currently trying to implement solutions within the available capabilities, noting that the treatment may sometimes be painful but aims to avoid a shock that some may not anticipate, and that the results will take time to appear.
He added that Libyan citizens booked $668 million through the personal purposes foreign currency system last week, and their cards will be loaded starting tomorrow, God willing. He also noted that all approved letters of credit that have been reviewed are being continuously executed, meaning large amounts of foreign currency are being injected into the market to increase supply and meet demand.
Al-Akkari stated that more than 330,000 Libyan citizens have registered in the system, emphasizing that reforms are ongoing but are being carried out by only one party in the country—the Central Bank of Libya—while questioning the role of other stakeholders in the reform and oversight process.
He said that the Central Bank of Libya holds foreign currency assets exceeding $100 billion, while the total foreign assets of the Libyan state surpass $150 billion. He questioned how a country with such wealth, resources, and large oil reserves could resort to borrowing from the World Bank, describing it as one of the most controversial issues among Libyans.
He added that these reserves cannot be recklessly used during a period of division or spent on consumption, stressing that Libya has sufficient resources to move toward stability, achieve urban development, and ensure a decent standard of living for its citizens—provided there is genuine political will to build the state, end divisions, unify governments, properly utilize resources, and hold corrupt individuals accountable.
The Central Bank of Libya announced exclusively to our source that it has begun implementing a liquidity distribution plan to its issuing departments across various regions, in preparation for supplying bank branches.
It confirmed that available liquidity amounts to 5 billion dinars, in addition to shipments arriving successively from abroad to meet the needs of Eid al-Fitr, the payment of February salaries, and family (children and spouse) allowances. It also clarified that the withdrawal limit will be set at 3,000 dinars for anyone holding a bank account.
The Bank explained that once banks and exchange companies are fully prepared, it will begin tomorrow, Sunday, selling foreign currency allocations for personal purposes worth $600 million, with immediate card loading on the same day.
It also confirmed the continuation of granting new approvals for letters of credit and selling their values directly to banks, in addition to settling letters of credit whose documents have been traded at an exchange rate of 6.30 dinars per dollar.
Our source has learned that the Central Bank held an important meeting today with exchange companies, informing them that they can now allocate (reserve/use) up to 100% of their balances instead of the previous 70%.
This comes as part of implementing more impactful measures targeting the parallel market, aimed at narrowing the gap between the parallel market rate and the official exchange rate. These measures are set to begin next Sunday and include increasing and accelerating the coverage of requests for letters of credit, bank cards, ATMs, and cash dollars, alongside a decline in the dollar’s value in the parallel market.
Libyan businessman Husni Bey wrote in an article:
The Central Bank of Libya cannot impose fees without an official decision signed by the Speaker of Parliament, Aguila Saleh — 100,000%. In general, Libya’s economic and financial crisis is behind the collapse of the dinar.
Libya’s current daily production stands at 1.35 million barrels of oil and 2.4 billion cubic feet of gas, covering about 93% of public spending after deducting the foreign partner’s share. This leaves a net total of 88% from production in the form of shares, royalties, rights, and taxes.
Total public spending: ≈ 270 billion LYD
Net spending after fuel deduction: 172 billion LYD
To cover this spending, the economy needs to sell foreign currency equivalent to at least 160 billion LYD. Accordingly, the Central Bank is compelled to sell the dollar at an exchange rate that allows financing of public spending of no less than this amount.
1. Uncontrolled Public Spending
Spending without a disciplined budget, exceeding revenues and financed through deficit spending → resulting in continuous inflation and a decline in the dinar’s purchasing power.
2. Monetary Financing & Exchange Rate Gaps
Leads to:
3. Fuel Gap (Most Dangerous)
Result: Smuggling, theft, distorted subsidies — ongoing for over 50 years.
4. Price Gaps as Hidden Taxes
Whether in:
These act as unofficial taxes paid by all citizens through higher prices and reduced real income.
They do not go to the Central Bank or government but are effectively collected from 100% of Libyans, benefiting only a few through speculation.
5. Source of Dollar Gap
At least 30% comes from trading the $2,000 personal allowance rights, turning them into speculative tools.
6. Impact of Recent Decisions
Imposing a 12% fee on the $2,000 personal allowance (with exemption for $500 family allowance) increased the price gap instead of reducing it.
7. Letters of Credit as a Speculation Tool
Due to a guaranteed price gap (~30%), especially in personal imports, making them easy to obtain and resell.
8. Cash vs Cheque Gap
Mainly due to restructuring the monetary base:
Result: Cash shortages, price gaps, and speculation on the dinar itself.
Price gaps (dollar – dinar – fuel) = hidden taxes
Do we agree that the roots of inflation and price gaps are:
How can these “hidden taxes” be formally collected through:
And then fairly redistributed to all citizens — through cash transfers, services, or reduced living costs — to compensate for the losses people currently bear without return?
The Central Bank of Libya told our source exclusively that it continues to process reservations for personal foreign currency allocations, with total reservations reaching approximately $665 million as of today, Wednesday. The Bank is set to begin selling these amounts to eligible beneficiaries starting next Sunday.
The Bank also confirmed that it is continuing to grant approvals for opening letters of credit, which have exceeded $1.7 billion in total value. It further noted that execution and sales to commercial banks have reached $600 million for new letters of credit.
In addition, the Central Bank has begun implementing the financing of amounts to correspondent banks of commercial banks for letters of credit whose documents have already been processed, at an exchange rate of 6.30 LYD per USD.
The Central Bank of Libya confirmed exclusively to our source that it will continue performing its duties to maintain monetary stability and the value of the dinar, despite pressures resulting from rising public spending and declining revenues.
The bank explained that it is ready to inject approximately $1.6 billion to cover demand for foreign currency and defend the value of the dinar amid increasing demand.
It also announced the resumption of the personal purposes system, with sales set to begin next Sunday for bookings made خلال this week, which are expected to exceed $500 million.
The bank noted that it has already started selling foreign currency for letters of credit allocated for importing goods, amounting to $500 million, with the process ongoing. It also aims to sell around $600 million for letters of credit through the coming week.
The bank further stated that it has begun settling the value of letters of credit whose documents have not yet been processed and were opened during 2025, at the exchange rates approved at the time of issuance, totaling $4 billion at a rate of 6.30 dinars per dollar.
Additionally, it confirmed its readiness to provide liquidity estimated at around 5 billion dinars to cover February salaries, the wife and children allowance, as well as Eid al-Fitr requirements in the coming days.
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.
