The Central Bank of Libya (CBL) announced a comprehensive package of new measures to regulate the foreign exchange market, ahead of an expanded meeting with commercial bank managers. The meeting aimed to establish implementation mechanisms that ensure smooth sales and enhance transparency.
The news comes as the Libyan dinar continued to gain value on the black-market foreign exchange to under LD 7 per dollar. This came after a concerted push by the CBL over the last two months to pump dollars and LD liquidity into the market. This was helped by the recent announcement of an agreement to have a unified budget for all of Libya and the spike in international crude oil prices due to the Iran war.
The CBL explained that the meeting will discuss adopting a mechanism for selling dollars in cash through a dedicated system. This includes identifying the branches that will conduct sales across Libya, as well as coordinating the transfer of US currency to these branches in preparation for the operation’s launch.
In a practical step, the CBL confirmed that an initial payment of US$ 1 billion in cash will be distributed to banks. The booking and purchase process will follow the same mechanism currently used by exchange companies. Customers will be able to choose their bank and branch within the system and specify the type of transaction: cash, money transfer, or inter-account transfer.
The bank clarified that cash dollar withdrawals will be available through designated branches, up to a maximum of US$ 2,000. The difference will be paid in Libyan dinars at the official exchange rate plus agreed-upon fees, with the selling price capped at 6.43 dinars per dollar.
The agenda also includes implementing the “restricted deposit” tool, which allows beneficiaries to purchase foreign currency up to 50% to 70% of their holdings and have the freedom to dispose of it as they see fit. Holders of unrestricted speculative certificates will also be able to benefit from this feature upon maturity.
In the same vein, discussions will focus on resuming dollar transfers between accounts via the instant payment system, along with reviewing foreign exchange regulations, deposit limits for foreign currency notes, and international transfers to and from Libya. The aim is to provide greater facilitation in this vital sector.
