The Central Bank of Libya (CBL) will use all its capabilities to bring the foreign exchange (FX) rate of the Libyan dinar (LD) to below LD 7 per US$. At one point, the LD was trading at LD 7.65/dollar yesterday.
The statement was made by CBL Governor, Naji Issa, yesterday during what the CBL described as ‘‘an extensive’’ meeting with representatives of newly licenced FX companies and FX bureaux.
These licenced FX bureaux had not existed before with foreign currency being sold informally, but in open view on the road running parallel and behind the CBL in Tripoli, on the edge of the Old City and Souk.
The newly licenced FX bureaux have not started operating yet as they await CBL activation and the deposit of hard currency into their accounts.
In his speech at the gathering in a top Tripoli hotel, Governor Issa admitted that some people may lose out because of the LD trading at less than LD 7/dollar. But added that some traders consider it a matter of stubbornness and may bring the LD exchange rate to LD 8 or 9/dollar to thwart the reform policies pursued by the CBL.
Regarding criticism aimed at the failure of the CBL to control the FX black-market, Issa said some say the CBL’s management has failed, but the truth is that only the state and the citizen will fail.
CBL attempting to end black-market FX market
The CBL said the meeting comes within the framework of its continuous efforts to regulate the FX market and activate the role of the private sector in providing financial services – but in accordance with clear legal controls and standards.
Licenced FX bureaux must adhere to CBL controls
During the meeting, the Governor stressed the importance of all licensed companies and offices adhering to the controls and instructions issued by the CBL, to ensure transparency and stability in financial transactions. He stressed that the licensed activity represents a key pillar in combating the parallel market and regulating the flow of foreign currencies through official channels. Without disclosing any further details, he revealed that several supporting measures will be announced later.
During the gathering, the Governor also listened to the remarks and interventions of several representatives of FX companies and bureaux, and discussed with them the challenges they face, stressing the readiness of the CBL to cooperate closely with all concerned parties to support this important economic activity.
