Libya's Central Bank Governor Calls for Ban on Non-Banking Imports
The policy, known as Decision No. 42 of 2025, was introduced by the Economy Ministry in January and took effect on April 1. It required all international trade transactions to be processed through accredited banks. However, in early April, the ministry decided to pause the law, a move that the Central Bank says undermines Libya's efforts to restore financial order.
In his letter, Essa expressed 'regret and surprise' at the ministry's decision to halt the ban. He warned that the reversal has fueled the growth of a parallel foreign exchange market, encouraged smuggling, and opened avenues for illicit financial activities.
These practices not only place pressure on the Libyan dinar's exchange rate but also risk Libya's standing with international correspondent banks that demand compliance with global standards.
Essa also flagged potential economic risks from importing goods outside official channels, including the depletion of foreign reserves and the invasion of substandard or unregulated products into the market. Such developments endanger consumer safety and undermine quality standards.
Calling for the swift restoration of the banking-only regulation, Essa urged the Economy Ministry to direct the Customs Authority to enforce the ban without delay.
He emphasized that this step is vital for achieving financial stability, ensuring legal compliance, and protecting Libya's reintegration into the global financial system.
This appeal comes at a critical moment as Libya continues efforts to rebuild its economy following years of political upheaval and fractured governance. Financial authorities have consistently warned that informal trade undermines fiscal discipline, drains reserves, and weakens state control over strategic sectors.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Libya Review
5 hours ago
- Libya Review
Libya's Central Bank & Parliament Discuss 2025 Budget
Governor of the Central Bank of Libya (CBL) Naji Issa met with the House of Representatives' Finance Committee on Thursday to discuss the proposed 2025 national budget and the rollout of the Bank's new 'Instant Salary' payment platform. The meeting also brought together a CBL board member and senior department heads. According to a statement from the Bank, the talks addressed the CBL's comments on the 2025 budget plan and reviewed Libya's key economic indicators as of July 2025. The discussions also covered ongoing measures aimed at safeguarding monetary and financial stability. The Finance Committee praised the Bank's economic policy initiatives, singling out the 'Instant Salary' project, developed in cooperation with the Ministry of Finance, as a major step toward improving payment efficiency and transparency. On July 6, the CBL had stressed that the proposed 2025 budget, valued at 160 billion dinars for the House-appointed government, required further consultation with the Bank and other state bodies before approval. The 'Instant Salary' system, officially launched on August 12, is designed to speed up the transfer of wages and benefits directly into recipients' bank accounts, reducing delays and ensuring secure, transparent transactions. The CBL says the platform will modernize payroll systems, improve resource management, and strengthen public confidence in the financial sector. As budget negotiations continue, the Central Bank's push for revisions and its investment in digital payment solutions highlight its pivotal role in shaping Libya's economic direction. Both the Bank and lawmakers agree that closer coordination is essential to ensure fiscal discipline, economic stability, and better service delivery to citizens in 2025. Tags: BudgetCentral Banklibyaparliament
Libya Review
6 hours ago
- Libya Review
UN Envoy Meets Libya's 5+5 Military Commission in Tunisia
The Special Representative of the United Nations Secretary-General in Libya, Hanna Tetteh, met on Thursday in Tunis with members of the Joint Military Commission (5+5) to review progress in implementing and sustaining Libya's nationwide ceasefire. According to the United Nations Support Mission in Libya (UNSMIL), the talks centered on reinforcing the ceasefire agreement and accelerating the withdrawal of foreign forces, foreign fighters, and mercenaries — a key provision of the October 2020 Geneva agreement. The 5+5 Commission reaffirmed its dedication, along with that of its subcommittees, to fully uphold the truce and to take practical steps toward ensuring Libya's security and stability. Members stressed that removing non-Libyan combatants remains essential for restoring full sovereignty and reducing the risk of renewed conflict. Tetteh underscored that political and security progress must move forward together. She emphasized that advances in the political process, including a credible roadmap to elections, will strengthen security gains, while lasting security will create the environment necessary for political reconciliation. The meeting highlighted the Commission's continued role as one of the few functional forums for cooperation between eastern and western military representatives. Despite Libya's prolonged political deadlock, the 5+5 framework has been instrumental in maintaining relative calm on the ground for nearly four years. Both sides agreed on the need for sustained dialogue and coordination, with the UN pledging continued technical and mediation support. UNSMIL reiterated its readiness to work closely with international partners to ensure full implementation of the ceasefire's terms. Tags: ceasefirelibyaMilitary CommissionUN Envoy
Libya Review
7 hours ago
- Libya Review
UN Envoy Calls on Libya's Parliament Speaker to Back Roadmap for Elections
The Special Representative of the United Nations Secretary-General in Libya, Hanna Tetteh, held talks with House of Representatives Speaker Ageela Saleh to urge all principal Libyan parties to assume their national responsibilities and actively participate in the political process. Joined by her deputy for political affairs, Stephanie Khoury, Tetteh called for a spirit of compromise to meet the Libyan people's aspirations for peace, stability, and prosperity through holding both parliamentary and presidential elections. During the meeting, Tetteh shared her assessment of Libya's political and security landscape, underscoring the urgency of overcoming the prolonged institutional deadlock. She briefed Saleh on the United Nations Support Mission in Libya's ongoing efforts to prepare a consensual and actionable roadmap to elections, confirming her intention to present it to the UN Security Council on August 21. The discussion took place amid persistent divisions between Libya's eastern-based House of Representatives and the western-based High Council of State, which have stalled agreement on a unified electoral framework. Tetteh reiterated that elections must be built on a clear and enforceable legal basis to ensure results that are widely accepted by Libyans and recognized internationally. While the media office of Ageela Saleh released only a brief statement noting that 'developments in the country at various levels' were discussed, the meeting highlighted the UN's view that engagement with Libya's top political figures is essential to break the stalemate and restore political legitimacy. For the UN, the coming weeks are decisive. The mission aims to close institutional divides, rebuild public trust, and set Libya on a path toward a stable, unified, and sovereign state. Tetteh emphasized that without genuine dialogue and compromise, Libya risks prolonging its transitional phase, leaving unresolved its urgent economic, security, and social challenges.
