The Tripoli Chamber of Commerce reported yesterday that the Minister of Economy and Trade, Mohamed Al-Hwej, met yesterday at the Ministry’s Tripoli headquarters with the Chairman of the Tripoli Chamber of Commerce, Anwar Abu Sitta, and the Chamber’s Legal Advisor, Younis Al-Zaidani.
The meeting focused on following up on the implementation procedures to resolve the problems facing business owners in obtaining bank credits and direct transfers necessary for the supply of goods and services.
The meeting ensured that these procedures were processed to ensure the flow of goods, stability, and food security. The meeting also followed up on procedures related to the Central Bank of Libya’s procedures and the release of shipments frozen by the Customs Authority at ports for import suppliers without credits until a clear mechanism is established in coordination with the Central Bank.
The Minister confirmed that the recommendations would be forwarded to the Central Bank and the Prime Minister for appropriate action.
Anwar Abu Sitta emphasized the need to reach a swift solution regarding the opening of credits and direct transfers as quickly as possible, especially in light of the current situation and the merchants’ need for swift banking procedures.
He also pointed out the need to take into account the fact that the holy month of Ramadan is approaching, a month that requires a plentiful supply of imported goods. The Chamber affirmed its continued follow-up of these vital files to ensure the smooth running of business and the provision of citizens’ needs.
Needs of small business versus the needs of the CBL
It must be borne in mind that there is a tension between the need of the CBL to impose strict monetary policy to strengthen the dinar and counter and mitigate hard currency smuggling and money laundering, on one hand, and the need for small business to be able to import goods using cash to purchase hard currency on the black-market.
The restriction of imports solely to those transacted through banking facilities is seen as draconian as the CBL does not offer viable compromise alternatives for small businesses. A strict implementation of the CBL’s banking transactions only policy would lead to a shortage of goods and price rises.
Protest by Misrata Chamber members against the CBL’s policy
It will be recalled that last Saturday (25 October) small business members of Misrata Chamber of Commerce protested against the policy outside the Chamber’s headquarters.
During this protest they emphasized that the CBL has not fulfilled its commitments to open new official Foreign Exchange companies to replace the black-market, nor has it provided alternative channels for small traders to transfer their money abroad, such as issuing international bank cards for traders with appropriate deposit limits.
The protest statement indicated that these cards should work in all countries of the world, especially in China and Korea, where Libyan banks do not accept bank credit systems.
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