No Result
View All Result
Saturday, June 3, 2023
23 °c
Tripoli
24 ° Sun
24 ° Mon
23 ° Tue
22 ° Wed
  • 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 Libya

CBL unified board meeting agrees new unified foreign exchange rate of LD 4.48/dollar

bySami Zaptia
December 16, 2020
Reading Time: 3 mins read
A A
32
SHARES
137
VIEWS
Share on FacebookShare on Twitter

By Sami Zaptia.

London, 16 December 2020:

The reunified Central Bank of Libya (CBL) announced today that it has agreed a new unified official foreign exchange rate for the Libyan dinar (LD). The new rate will be effective as of 3 January 2021.

Following on from its ”preliminary” 7 December meeting, the CBL statement today said the board will increase its meetings in the coming weeks to seek to solve the various banking sector problems in a financial and monetary safe and sustainable manner.

RELATED POSTS

Benghazi Turkish Trade Exhibition postponed to 12-15 June

HB Group opens Apple authorised I-Shop reseller in Tripoli’s Siyahia

The new exchange rate has set one U.S. dollar at LD 4.48. Previously there were numerous official exchange rates with the main one at LD 1.4 per dollar.

Meanwhile, up until two weeks ago, the black-market dollar exchange rate was at around LD 6.50 / dollar. It fell sharply over the last week on the news of the CBL board meeting to around LD 5.50.

Anatomy of the decision

The decision to unify the LD exchange rate came after the CBL held its first official Board of Directors meeting for five years. The CBL board had split after the 2014 Libya Dawn Tripoli coup leading to the CBL to split into a western and eastern branch.

The meeting of the full board of the CBL follows on from reconciliation talks led by UNSMIL and a thawing of relations between western and eastern Libya.

More specifically, economic and monetary reforms, including the fixing of a unified LD exchange rate, were a precondition of the Maetig-Hafter agreement on the resumption of oil production/exports. In return for Hafter allowing oil production/exports to resume, certain economic/political reforms were agreed by the Tripoli political powers. These included reforms by the CBL.

Unfair competition and corruption

The numerous LD exchange rates had given state entities a huge unfair advantage against the private sector and enabled and encouraged huge corruption of the official exchange system.

On a competition level, the advantageous exchange rate granted to the state warped the marketplace and prevented a fair playing field and competition. They stunted the growth of the Libyan private sector and prevented it from growing and becoming competitive and contributing to the Libyan economy as it should and in line with international standards.

Corruption

Moreover, the advantageous exchange rate to state entities led to and encouraged much corruption. Allegedly, for example, numerous militia leaders were able to coerce the powers that be into granting them letters of credit at the official exchange rate to import goods, but the goods were never imported, or much lower valued goods were imported instead.

This way, the balance of the hard currency was either hoarded abroad or imported into Libya for sale on the foreign exchange black-market.

There is a widespread public perception in Libya that various bank and CBL employees were implicated in sustaining this black-market racquet and who worked against lowering the black-market exchange rate of the dollar.

Other reforms

The Maetig-Hafter deal also prescribed for the resumption of the bank clearing/transfer system with eastern Libya, the unification of the budgets of western and eastern Libya, including the absorption of the debts of eastern Libya.

 

At Geneva Libyan economy reform meeting, UNSMIL calls for critical decisions within two days | (libyaherald.com)

The Maetig-Hafter proposal to resume oil exports: Analysis | (libyaherald.com)

 

Hafter announces he will permit restart of oil production and exports, but fails to withdraw forces and mercenaries from oilfields | (libyaherald.com)

 

CBL unified board holds a ‘‘preliminary’’ meeting | (libyaherald.com)

 

CBL: LD 3 bn in FX smuggling, money laundering – accuses local banks of corruption | (libyaherald.com)

 
Share13Tweet8Share2

Related Posts

Attorney General orders arrests at Jumhouria bank branch for embezzlement
Libya

Members of illegal organizations given imprisonment and death sentences by Misrata Criminal Court

May 30, 2023
State recognised militia and Libyan Army clash in central Tripoli
Libya

State recognised militia and Libyan Army clash in central Tripoli

May 29, 2023
FDCC destroys non-conforming shipments of medicines, calls on suppliers to respect Libyan health standards
Libya

FDCC destroys non-conforming shipments of medicines, calls on suppliers to respect Libyan health standards

May 29, 2023
GNU to take oath at Benghazi HoR session and budget to be approved at Tripoli session: GNU
Libya

Tripoli Libyan government conducts drone strikes against criminal hideouts in western coast

May 25, 2023
AmCham Libya Networking Breakfast
Libya

US Embassy in Tripoli announces easing of visa protocol: One-year multiple entry visas now replace three-month single-entry visas

May 24, 2023
Ten former antagonists, now presidential candidates, including Hafter, Bashagha and Maetig gather in Benghazi
Libya

Bashagha suspended by HoR as eastern-based prime minister

May 19, 2023
Next Post

Libya Economic Meeting agree current economic situation is unsustainable

EU grants US$ 40,000 to Sebha entrepreneurs

 

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

    228 shares
    Share 91 Tweet 57
  • The Tripoli Libyan Ministry of Transport confirms development plan for Libya-Tunisia Ras Jedir border crossing

    67 shares
    Share 27 Tweet 17
  • Members of illegal organizations given imprisonment and death sentences by Misrata Criminal Court

    52 shares
    Share 21 Tweet 13
  • Tripoli Libyan government conducts drone strikes against criminal hideouts in western coast

    144 shares
    Share 58 Tweet 36
  • Sirte Oil Company’s smart fields give it higher efficiency, more accurate real-time data for timely decisions

    45 shares
    Share 18 Tweet 11
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

Benghazi Turkish Trade Exhibition postponed to 12-15 June

HB Group opens Apple authorised I-Shop reseller in Tripoli’s Siyahia

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?