The Governor of the Central Bank of Libya (CBL), Naji Issa, has authorised banks, exchange companies, and offices to begin taking the necessary steps to activate the operational mechanism for implementing rapid money transfers through the MoneyGram and Western Union systems, in accordance with the regulations and instructions issued by the CBL.
The news came out of an expanded meeting held yesterday at the headquarters of the CBL’s Banking and Monetary Control Department. The CBL said the meeting came as part of the effort to regulate and develop the operations of exchange companies and offices and enhance coordination between them and the banking sector,
The meeting included several general managers of commercial banks, along with directors of relevant CBL departments.
Foreign Exchange (FX) Bureaux
During the meeting, discussions focused on regulating the operational mechanisms of exchange companies and offices (FX Bureaux) licensed by the CBL, in preparation for their commencement of operations in accordance with approved regulations and instructions.
Western Union and MoneyGram
The meeting also addressed the mechanism for transactions between commercial banks and exchange companies and offices, particularly regarding the execution of rapid money transfers through Western Union and MoneyGram.
Participants discussed the sources of foreign currency for the accounts of exchange companies and offices, as well as the procedures required to allow these companies and offices to execute direct transfers through accounts opened for them at commercial banks, ensuring compliance with regulatory controls and anti-money laundering and counter-terrorism financing standards.
Integrity of technological systems
The meeting also addressed the technological systems that exchange companies, commercial banks, and the Central Bank of Libya will adopt to implement the proposed operational mechanism, ensuring its integration and the integrity of its operational and oversight procedures.
The CBL further revealed that this meeting is part of the preparations for the meeting scheduled for next week with exchange companies and offices to finalize discussions on the relevant regulatory and technical aspects.
Background
It will be recalled that CBL Governor Naji Issa has come in for much criticism for his failure to impose reforms. These come with the background of global prices of a barrel of oil (Brent Crude) falling at one stage recently to US$ 55, negatively affecting the Libyan state’s main revenue, the Libyan dinar on the black-market at one stage falling to LD 8.60 per US$, putting further pressure on rising commodity prices, and the continuing cash crisis at Libyan banks.
Governor Issa’s promises unfulfilled
It will be recalled that CBL Governor Naji Issa had promised in August this year that the LD will strengthen to under LD 7 per dollar on the black-market and that the cash crises will end by 1 October this year. Neither aims have been achieved.
Part of the CBL’s wider reform measures
Naji Issa has enacted various measures such as reducing commissions on the use of e-payments, insisting all entities that receive payments from the public take e-payments, and announcing the imminent opening of official FX bureaux.
These various ongoing efforts by Naji Issa come within his CBL’s wider effort to reform Libya’s economic, monetary, fiscal and financial system to reduce money laundering, reduce the grey economy and tax evasion, reduce demand for the US dollar in the black-market, strengthen the Libyan dinar and stabilise inflation and prices.
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