Latest news with #CentralBankofLibya
Libyan Express
a day ago
- Business
- Libyan Express
CBL introduces stricter controls on foreign currency deposits
BY Libyan Express Aug 11, 2025 - 03:49 Everyday transactions meet new compliance standards set by the CBL The Central Bank of Libya (CBL) has introduced new regulations governing foreign currency cash deposits in bank accounts, in a move aimed at strengthening oversight, ensuring compliance with anti–money laundering laws, and curbing the financing of terrorism. Under the updated guidelines, issued to all banks across the country, both individuals and legal entities are permitted to deposit up to USD 10,000 — or the equivalent in other foreign currencies — without the need to provide proof of the source of funds. However, deposits exceeding this threshold will require a currency disclosure declaration issued by Libyan border authorities as a mandatory condition before the funds can be accepted. The CBL circular also clarifies that legitimate sources and uses for foreign currency accounts include incoming transfers from abroad, transfers between local foreign currency accounts, cash withdrawals, and domestic or international transfers upon the account holder's request. According to the CBL, the move is part of broader efforts to tighten financial controls, improve transparency, and align Libya's banking system with international compliance standards. For everyday account holders, the measures are expected to simplify small and routine deposits while applying stricter scrutiny to larger transactions that could be linked to illicit activities. The views expressed in Op-Ed pieces are those of the author and do not purport to reflect the opinions or views of Libyan Express. How to submit an Op-Ed: Libyan Express accepts opinion articles on a wide range of topics. Submissions may be sent to oped@ Please include 'Op-Ed' in the subject line.
Libya Observer
4 days ago
- Business
- Libya Observer
The Libyan Dinar Between Central Bank Diplomacy and the Expansion of the Parallel Market: Cautious Optimism on the Horizon!
By Al-Mihdi Hindi, political economy analyst The Libyan landscape has recently witnessed rapid developments that may pave the way for a new phase of economic stability and offer the long-awaited boost of optimism for the Libyan dinar. With the bold steps taken by the Central Bank, signs of political progress, and the signing of oil agreements, the outlines of a brighter economic future for Libya are beginning to take shape. The Central Bank: Bold Steps to Regulate the Market The Central Bank of Libya is showing an increasing awareness of the urgent need to bridge the gap between the official exchange rate and the parallel market rate—an economic dilemma that has directly impacted citizens' daily lives. Recent hints about reducing the foreign currency tax to 10%, or potentially eliminating it altogether, signal a strong willingness on the part of the bank to make decisive moves. While such a move may cause a temporary increase in the value of the dinar, the ultimate goal remains achieving a sustainable and balanced exchange rate. Furthermore, the recent rapprochement between the Central Bank governor and currency exchange companies, through direct meetings aimed at improving conditions, reflects a new approach centered on cooperation with market players. If these efforts succeed, we may witness a positive shift in market dynamics, which would reinforce long-term confidence in the Libyan dinar. The Political Solution... The Secret to Economic Recovery Libya's economic challenges cannot be separated from its complex political landscape. In this context, diplomatic developments take on utmost importance. Leaks from the UN Special Envoy to Libya, Hanna Tetteh, suggest that the formation of a single unified government is imminent. A unified government could provide the necessary foundation for stability and allow for the implementation of comprehensive economic reforms. Such a government would be more effective, boost confidence in the country's ability to manage its resources, encourage the return of investments, and naturally enhance the value of the Libyan dinar. National Oil Corporation: The Return of Major Players The oil sector is the lifeline of the Libyan economy, and any positive developments within it have a direct impact on the country. In this regard, the National Oil Corporation's recent signing of an agreement with U.S. giant ExxonMobil to resume operations in Libya is a milestone. This step is not merely a financial investment—it is a powerful message from major international companies, expressing renewed confidence in Libya's security and economic outlook. Moreover, the signing of another agreement with Schlumberger to expand its services bolsters Libya's ambition to reach a production level of 1.5 million barrels per day once again, which would inject more hard currency into the state's coffers. Hope Exists… and Defending the Dinar Is Possible In light of these positive indicators, hope lies in the unification of efforts. The call for a unified government is not just a wish—it is a political and economic necessity that could open new horizons. Political unity is the key to improving economic conditions and strengthening the value of the Libyan dinar. There is no doubt that the Central Bank has the tools and the capacity to defend the dinar, but its efforts can only be fully effective within a stable political environment that supports its decisions. Disclaimer: The views and opinions expressed in this article are those of the writer, and do not necessarily reflect those of the Libya Observer
Libya Observer
4 days ago
- Business
- Libya Observer
Parallel government rejects submitting employee data to CBL for unified payroll system
The eastern-based parallel government has reiterated its firm refusal to provide the financial and banking data of its employees, claiming the move is intended to protect the rights of its workforce, according to a statement it issued. The government said its stance is a response to a circular issued by the Central Bank on July 30, which, it claimed, failed to respect the official procedures for acquiring employee financial data. The parallel government rejected the Central Bank's decision to begin automated disbursement of public sector salaries starting in September, and to launch the Unified Treasury Account System, which is expected to expose corruption, theft, and duplication in the salaries section. In his statement, Prime Minister Osama Hammad said the integrity of the administrative and financial system should not be subject to any political or administrative manipulation that could jeopardize employee interests. Hammad added that his government had communicated with the Central Bank of Libya to pursue comprehensive economic and financial reforms. He referred to a meeting last April that included the CBL Governor, government officials, and Presidential Council representatives, where participants stressed the importance of aligning public policies to serve the national economy. The parallel government also rejected the activation of the 'Your Instant Salary' platform, which the Ministry of Finance and the Central Bank of Libya are working to implement. According to its developers, the platform could save the state budget billions of dinars currently lost to fake or incorrect employee accounts. Observers have accused the parallel government of protecting corrupt individuals benefiting from the long-standing financial chaos in the public payroll system.
Libya Herald
5 days ago
- Business
- Libya Herald
International information received on suspicious activities passing through Libyan financial system: CBL
The Central Bank of Libya's (CBL) National Committee for Combating Money Laundering and Terrorist Financing issued the following statement today: ''We affirm that responding to the increasing challenges facing the financial system of the Libyan state represents a national responsibility that requires the concerted efforts of all concerned parties. It is necessary to adopt an integrated legislative and institutional framework in line with international standards, to ensure that Libya remains within the global financial system. - The receipt of international information regarding suspicious activities suspected of passing through the Libyan financial system, which reflects the fragility of the current system and exposes the State to the possibilities of international legal accountability. We call for the speedy adoption of the draft Anti-Money Laundering and Combating the Financing of Terrorism Law, as a key step towards meeting the requirements of the Financial Action Task Force (FATF) and enhancing confidence in the Libyan financial system. Any delay in this regard will expose Libya to serious risks to the reputation of the Libyan financial system and economic and livelihood stability. We call on all authorities, especially legislative, executive, judicial and supervisory authorities, as well as law enforcement agencies, to shoulder their responsibilities and take the necessary urgent measures to ensure the integrity of the financial system and the protection of the national economy.''
Libya Herald
5 days ago
- Business
- Libya Herald
Minister of Economy discusses regulating priorities of market needs and import budget
The Tripoli based Libyan Minister of Economy and Trade, Mohamed Al-Hwej, held a meeting at the Ministry's Tripoli office today, in the presence of the advisory team and the Director of the Internal Trade Department, within the framework of following up on the mechanisms of regulating import operations through banking instruments, and preparing the import budget to ensure that the needs of the local market are met according to priorities. Small traders call for support with easier payment mechanism The meeting addressed the most prominent challenges facing companies and suppliers in completing import procedures through commercial banks, including difficulties related to the use of approved banking instruments. Several representatives of companies and traders also called for the Ministry's intervention at the Central Bank of Libya to facilitate procedures and support small traders, by activating electronic means of payment and organizing import operations to achieve competitive justice in the local market. Harmonizing monetary, financial and trade policies For his part, the Minister confirmed that the Ministry has developed an integrated vision to regulate the import budget, and that it is in the process of presenting this vision during an upcoming meeting that brings together the Governor of the Central Bank of Libya, the Minister of Finance, the National Economic and Social Development Board (NESDB), and the President of the General Union of Chambers of Commerce, Industry and Agriculture. This vision aims to harmonise monetary, financial and trade policies in a way that serves the national economy, strengthens the dinar, and helps the Central Bank in implementing its policies for economic reforms in line with the three financial, commercial and monetary policies. Analysis: Tension between the CBL and the Ministry – Achieving a balance It must be noted that there exists, and has existed for decades, a fundamental tension between the aims of the Central Bank of Libya and the Economy Ministry. Monetary control On the one hand, the Central Bank of Libya wishes to achieve monetary control, the reduction of the cash economy and inflation, and defending the foreign exchange value of the Libyan dinar through limiting imports to those transacted through banking instruments such Letters of Credit (LCs). LCs force importers to deposit their cash into their bank accounts. Smooth supply of goods to keep prices down On the other hand, the Economy Ministry aims to ensure the smooth flow of the import of goods to supply the market, including enabling the large number of small importers who operate largely using cash through the foreign exchange black-market. Typically, these smaller importers would react to short-term gaps in the market or offers of discounted goods abroad to strike fast deals. They would be traders who would buy goods in neighbouring Tunisia or Egypt and quickly transport them by road across the borders. Another important sub-category are fresh fruit and vegetables importers buying in cash from Egyptian or Tunisian farmers/middlemen who do not use the bureaucratic and slow banking system as a mode of receiving payment. Redistribution of wealth, helping SMEs, creating enterprise and jobs Moreover, the strata of cash-paying importers is usually made up of SMEs that the government does not have to find jobs for. They are an enterprising group of small businesses who create jobs. A complete clampdown on their activities would lead to other possible economic and social negative consequences. It would be seen as an attack on the poorer in favour of what is referred to in Libya as the ''fat cats'' that open LCs in the millions. The CBL policy has failed before The Central Bank of Libya seeks to stop imports that are not paid for through banking instruments in its fight against the black-market and its defence of the FX rate of the dinar. However, this policy has been attempted in the past – unsuccessfully. Such a complete shutdown had led to a shortage in the supply of goods, the hoarding of goods and sharp price rises. The price rises had resulted in political pressure on the government of the day and a relenting and reversal of the policy. There are fundamental flaws in Libya's monetary and financial system leading to distortions in the market and the economy. The independent-from-the-government Central Bank of Libya and the government must arrive at a workable compromise solution whereby goods arrive regularly and smoothly in the Libyan market while the negative effects of the FX black-market and inflation are negated, and the weak dinar is defended.
