{"id":252336,"date":"2024-12-14T13:24:07","date_gmt":"2024-12-14T11:24:07","guid":{"rendered":"https:\/\/sada.ly\/en\/?p=252336"},"modified":"2024-12-14T13:24:07","modified_gmt":"2024-12-14T11:24:07","slug":"al-akari-causes-and-solutions-regarding-the-circulation-of-over-70-billion-dinars-in-cash-outside-the-banking-system","status":"publish","type":"post","link":"https:\/\/sada.ly\/en\/al-akari-causes-and-solutions-regarding-the-circulation-of-over-70-billion-dinars-in-cash-outside-the-banking-system\/","title":{"rendered":"Al-Akari: Causes and Solutions Regarding the Circulation of Over 70 Billion Dinars in Cash Outside the Banking System"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The economic expert, <em>Misbah Al-Akari<\/em>, wrote an article in which he stated: &#8220;An amount of cash exceeding 70 billion Libyan dinars is circulating in the local market outside the banking system. This massive amount has become subject to trading in a very peculiar phenomenon referred to as \u201cburning.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The rise in government spending, which surpassed 84 billion dinars\u2014of which 57 billion is allocated to salaries\u2014has necessitated the availability of rapid payment tools to avoid further financial complications, including the ongoing liquidity issue. Addressing this challenge requires introducing the payment tools available in the Libyan banking system, which include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>RTGS (Real-Time Gross Settlement) system<\/strong>: Allows transferring unlimited amounts between customer accounts for transactions exceeding 10,000 dinars.<\/li>\n\n\n\n<li><strong>ACH (Automated Clearing House) system<\/strong>: Functions similarly to RTGS but is used for transactions below 10,000 dinars.<\/li>\n\n\n\n<li><strong>Certified checks<\/strong>: Up to 250,000 dinars.<\/li>\n\n\n\n<li><strong>Electronic and traditional checks<\/strong>: Electronic checks are preferred due to their fast clearance (within 24 hours), while traditional checks are being phased out.<\/li>\n\n\n\n<li><strong>Internal transfers within the same branch<\/strong>: Upon customer request.<\/li>\n\n\n\n<li><strong>Electronic payment methods<\/strong>.<\/li>\n\n\n\n<li><strong>Bank cards<\/strong>: Issued by Libyan banks, usable at ATMs and POS devices. With the activation of the <em>Off-US<\/em> service, all bank cards can be used across different banks&#8217; ATMs and POS devices.<\/li>\n\n\n\n<li><strong>Banking apps<\/strong>: Available at all banks, offering various services such as money transfers, balance checks, transaction history, and card purchases.<\/li>\n\n\n\n<li><strong>LY PAY and ONE PAY services<\/strong>: These allow money transfers between customer accounts across banks.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The Central Bank of Libya reported the following results for these payment tools:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Number of checks<\/strong>: 2,890,587 checks amounting to 96 billion dinars.<\/li>\n\n\n\n<li><strong>Bank cards<\/strong>: 4,754,518 cards with total transactions worth 19.9 billion dinars.<\/li>\n\n\n\n<li><strong>App subscribers<\/strong>: 3,111,952 users generating transactions valued at 84.9 billion dinars.<\/li>\n\n\n\n<li><strong>POS devices<\/strong>: 72,769 devices.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">A total of <strong>121 million electronic transactions<\/strong> were conducted, amounting to 104.9 billion dinars. Meanwhile, <strong>cash distribution<\/strong> this year reached 59 billion dinars.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">From these figures, it is evident that the solution to the liquidity problem lies in gradually transitioning to alternative payment tools, as detailed above. This would reduce dependence on cash. Currently, cash withdrawn from banks is spent in retail stores and does not return to the banking system. Instead, it becomes a traded commodity, often resold to citizens at a markup of up to 35%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Despite the governor&#8217;s directives for commercial banks to reduce fees to 1\u20131.5%, Libyan citizens still complain about high fees. This is attributed to clear exploitation by some retailers and non-compliance by certain banks with these instructions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We urge the Banking Supervision Department to monitor the issue of fees and call on relevant authorities to address the exploitation of excessive fees by some merchants. Strict enforcement can help support this strategic transition to alternative payment methods.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The economic expert, Misbah Al-Akari, wrote an article in which he stated: &#8220;An amount of cash exceeding 70 billion Libyan dinars is circulating in the local market outside the banking system. This massive amount has become subject to trading in a very peculiar phenomenon referred to as \u201cburning.\u201d The rise in government spending, which surpassed [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":252337,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[553],"tags":[736,737,628,613],"class_list":["post-252336","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-post-of-the-week","tag-banking","tag-cash","tag-central-bank","tag-libya"],"acf":[],"_links":{"self":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/252336","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/comments?post=252336"}],"version-history":[{"count":1,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/252336\/revisions"}],"predecessor-version":[{"id":252338,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/252336\/revisions\/252338"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/media\/252337"}],"wp:attachment":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/media?parent=252336"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/categories?post=252336"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/tags?post=252336"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}