Tripoli government temporarily suspends foreign exchange sales surcharge

By Sami Zaptia.

London, 4 January 2021:

The Tripoli Libyan government yesterday suspended temporarily its decision (No. 1300/18) to impose a foreign exchange sales surcharge. The suspension is for three months and is subject to extension.

In article 2 of its decision, the Tripoli government linked the decision to the start of the new unified Libyan dinar exchange rate announced by the Central Bank of Libya (CBL).

It is noteworthy that the CBL Board of Directors of the issued a decision at its last meeting to adjust and unify the official exchange rate of the Libyan dinar in all government, commercial and personal transactions at LD 4.48 for one U.S. dollar.

Previously, a foreign exchange sales surcharge had been in operation to help attract cash into banks to solve the country’s liquidity crisis and to help reduce the budget deficit. However, the official exchange rate had been abused and led to corruption and a suppression of the private sector.

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