By Sami Zaptia.
Tunis, 13 January 2016:
The Central Bank of Libya (CBL) has reduced the maximum annual withdrawal and spending limit for . . .[restrict]all Libyan-issued debit cards by 50 percent.
In a directive dated 7th January and published yesterday the CBL reduced the annual maximum ceiling from US$ 10,000 to US$ 5,000.
Yesterday’s announcement updates the CBL’s last directive dated 1st September (published 4th September 2015) in which it had added the prerequisite of the National ID Number for debit card holders.
In its latest directive the CBL does not give a breakdown of the maximum daily, weekly and monthly ceilings for purchase of goods and cash withdrawals, but it is assumed that all these limits will be reduced by 50 percent.
The reduction of foreign currency maximum annual limits by the CBL is seen in the framework of its continued efforts to reduce the depletion in its foreign currency reserves.
This is caused by the continued low level of Libyan oil production to around 400,000 bpd, down from a peak of 1.6 million in 2013, as well as the continuing fall in international crude oil prices to around the US$ 30 pb mark.
On the other hand, the CBL is fighting corruption by bank employees believed to be issuing huge numbers of debit cards to criminal accomplices in order to obtain large amounts of hard currency. This fraudulently obtained hard currency is then sold on the Libyan black market at two or two-and-a-half times the official exchange rate of LD 1.30 per 1 US $.
The move by the CBL to cut the annual maximum withdrawal limit by 50 percent will hit many Libyans forced to live abroad longer term for political or security reasons. It will also affect the thousands of Libyan students stranded abroad not receiving their delayed official scholarships as well as students studying abroad privately. [/restrict]
