No Result
View All Result
Tuesday, June 6, 2023
23 °c
Tripoli
22 ° Wed
22 ° Thu
23 ° Fri
26 ° Sat
  • Advertising
  • Contact
LibyaHerald
 
  • Home
  • Libya
  • Business
  • Opinion
  • Magazine
  • Advertising
  • Login
  • Register
SUBSCRIBE
  • Home
  • Libya
  • Business
  • Opinion
  • Magazine
  • Advertising
  • Login
  • Register
No Result
View All Result
LibyaHerald
No Result
View All Result
Home Business

Central Bank of Libya removes cash deposit condition for bank transfers

bySami Zaptia
May 10, 2012
Reading Time: 3 mins read
A A
12
SHARES
52
VIEWS
Share on FacebookShare on Twitter

By Sami Zaptia.

Tripoli, 10 May:

The Central Bank of Libya (CBL) has sent this week a circular to all banks in Libya . . .[restrict]dated 15 April and signed by its head of Currency Control Mohamed Abusenena informing them that customers wishing to officially transfer money no longer needed to make a 25 percent cash deposit .

Previously, any Libyan companies wishing to officially transfer money abroad to import certain permitted items, such as production equipment and materials, needed to deposit a 25 percent cash deposit in Libyan dinars. This condition was enforced even if the customers had the covering amount in their bank accounts.

This procedure was introduced after Liberation in an effort to solve the liquidity problem of the Revolution period caused by people hoarding cash at home.

RELATED POSTS

Fuel and gas to southern Libya being supplied from Misrata Depot: Brega

Top law firm joins new British Libyan Business Association

Official bank transfers are only available for certain items deemed necessary for Libya at this stage of its post revolution recovery. Services are not part of that list.

The black market..

It is worth mentioning that there exists a large parallel black market where Libyans can transfer easily to most of the countries of the world. Most of these transfers are transacted through Dubai where a large and active Libyan community resides and plays an active role in this money market. This has been the case for quite a few years now, and started well into the era of the previous regime.

In reality, getting an official transfer is quite bureaucratic as businesses are required to get approval first from the Chamber of Commerce. Then the account holding branch transfers the request to the CBL for approval, which has been quite a time consuming process. When you add to that the previous condition of the cash deposit, it’s no wonder the Libyan economy has been slow in getting back to normal.

CBL was still acting as if Libya was in a state of war

A commercial bank manager, speaking strictly off the record to Libya Herald this week, felt that the ‘CBL was still acting as if Libya was in a state of war. The cash liquidity crisis has passed and the Currency Control Department in the CBL was still operating as if it was still under the previous regime. It still thinks it is there to control currency transfers as opposed to being there to monitor, operate and organize them. There is plenty of Libyan currency around now.’

‘It is wrong. It is slowing the economy down for no good reason’.

To reduce money smuggling and money laundering?

When asked if it was to reduce money smuggling and money laundering, the manager replied ‘those who wanted to smuggle money out of the country did it a long time ago. They don’t transfer dinars, and through banks, do they? They transfer hard currency, which they can still buy easily today in unlimited quantities on the black market.’

What about inflation?

What about inflation, could that be the reason, I enquired? ‘In the early days after Liberation, I could say yes. But prices have fallen a lot now and keeping currency controls on and encouraging the black market does not help inflation. Having a lot of goods in the market is good. It creates competition and keeps prices lower. Making it easier for businesses to import keeps prices down, not up’.

Elections…

Asked when he felt there would be an easing of currency transfers, he replied with the answer that seems to be to most of Libya’s problems these days: ‘not before the elections. They (the CBL) are too scared to make the decision to remove them (the currency controls) completely.’ [/restrict]

 
Tags: bank transfersbanksblack marketcashCBLCentral Bank of LibyacurrencydinarsDubaiinflationLibyamoneymoney launderingsmugglingtransfer
Share5Tweet3Share1

Related Posts

British Libyan Business Association and the Libyan Business Council sign MoU
Business

British Libyan Business Association and the Libyan Business Council sign MoU

June 5, 2023
Libyan Export Promotion Centre discusses with Italian Chamber export of olive oil, dates and tuna to Italy and Europe
Business

Libyan-Tunisia agricultural, marine and food sector B2B meetings – Tunis 19 to 20 June

June 5, 2023
Tripoli Chamber leading business delegation to Saudi on 22 August
Business

Tripoli Chamber leading business delegation to Saudi on 22 August

June 5, 2023
On National Information Technology Day, the mini-satellite project CubeSat was launched
Business

On National Information Technology Day, the mini-satellite project CubeSat was launched

June 4, 2023
Ministry of Industry provides support to the Industrial Research Centre
Business

Ministry of Industry provides support to the Industrial Research Centre

June 4, 2023
Benghazi Turkish Trade Exhibition postponed to 12-15 June
Business

Benghazi Turkish Trade Exhibition postponed to 12-15 June

June 3, 2023
Next Post
International bus manufacturers make presentations to Libya

International bus manufacturers make presentations to Libya

Government presses still on strike – newspapers printed in Tunis

Government presses still on strike – newspapers printed in Tunis

 

Advertise on LibyaHerald

Reach thousands of our site visitors daily

240 x 400px

Advertise Here
ADVERTISEMENT

Top Stories

  • State recognised militia and Libyan Army clash in central Tripoli

    State recognised militia and Libyan Army clash in central Tripoli

    253 shares
    Share 102 Tweet 63
  • HB Group opens Apple authorised I-Shop reseller in Tripoli’s Siyahia

    75 shares
    Share 30 Tweet 19
  • AMLY School is offering an innovative approach to learning in Libya

    61 shares
    Share 25 Tweet 15
  • British Libyan Business Association and the Libyan Business Council sign MoU

    59 shares
    Share 24 Tweet 15
  • Members of illegal organizations given imprisonment and death sentences by Misrata Criminal Court

    60 shares
    Share 24 Tweet 15
LibyaHerald

The Libya Herald first appeared on 17 February 2012 – the first anniversary of the Libyan Revolution. Since then, it has become a favourite go-to source on news about Libya, for many in Libya and around the world, regularly attracting millions of hits.

Recent News

British Libyan Business Association and the Libyan Business Council sign MoU

Libyan-Tunisia agricultural, marine and food sector B2B meetings – Tunis 19 to 20 June

Sitemap

  • Why subscribe?
  • Terms & Conditions
  • FAQs
  • Copyright & Intellectual Property Rights
  • Subscribe now

Newsletters

    Be the first to know latest important news & events directly to your inbox.

    Sending ...

    By signing up, I agree to our TOS and Privacy Policy.

    © 2022 LibyaHerald - Powered by Sparx Solutions.

    No Result
    View All Result
    • Login
    • Sign Up
    • Cart
    • Libya
    • Business
    • Advertising
    • About us
    • BusinessEye Magazine
    • Letters
    • Features
    • Why subscribe?
    • FAQs
    • Contact

    © 2022 LibyaHerald - Powered by Sparx Solutions.

    Welcome Back!

    Sign In with Facebook
    Sign In with Linked In
    OR

    Login to your account below

    Forgotten Password? Sign Up

    Create New Account!

    Sign Up with Facebook
    Sign Up with Linked In
    OR

    Fill the forms bellow to register

    *By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
    All fields are required. Log In

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In
    This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
    Are you sure want to unlock this post?
    Unlock left : 0
    Are you sure want to cancel subscription?