CBL renews call on Economy Ministry to prohibit imports without payment through official bank transfers starting from 15 June

The Governor of the Central Bank of Libya (CBL), Naji Issa, addressed the Minister of Economy and Trade, Suhail Abu Shiha, in a letter dated 18 May 2026 (Reference 6/1211 – leaked to Libyan media today), urging the ministry to issue a decision prohibiting the import and re-export of goods without transfer procedures through the banking sector, effective from 15 June 2026.

The CBL stated that the aim of this restriction is to:

– Preserve the economic security of Libya

– Reduce smuggling

– Reduce the entry of prohibited and non-compliant goods

– Ensure the safety of the market

– Protect the consumer

– Avoid the risks of international evaluation in the areas of combating money laundering and the financing of terrorism

CBL’s five previous requests
In yesterday’s letter the CBL also referred to five previous letters to the Ministry of Economy (under the previous minister) dating from January 2025 in which it called for the imposition of this restriction.

Importing and re-exporting outside official banking system increasing
It also noted that the phenomenon of importing and re-exporting without the use of the official banking system has not only continued but has increased during this period. This phenomenon, it added, is what is feeding the black-market, the financing of illegal activities and the import of substandard products that can negatively affect the health and safety of citizens.

Negative effects of unofficial payments for imports
The continuation of this phenomenon also poses a direct threat to the national economy, leading to the depletion of foreign currency reserves and rising prices. It also fuels corruption and smuggling networks, extending to a direct threat to economic and social security, and presents a major obstacle to the Ministry of Economy’s efforts to control and monitor the prices of goods and services.

The CBL has implemented payment methods for small importers
Recognizing the seriousness of this phenomenon, the CBL pointed out that it has implemented various payment methods, most recently providing direct transfers of up to $100,000 to small traders and artisans.

No justification for the continuation of the status quo
This, it felt, eliminates any justification for importing goods outside of official channels. Furthermore, banks have been authorized to conduct foreign currency transfers between accounts, enabling direct outward transfers using these accounts to import goods and services.

Comment and analysis
It must be recalled that the Libyan authorities have been attempting to impose restrictions on the payment of import outside the official banking system for the best part of the last decade.

However, after issuing decrees or making announcements restricting imports on several occasions, the government has without fail made a U-turn.

The main obstacle had been the fact that the CBL had not previously provided payment facilities for small traders, reserving LC etc for ”big businesses”. This made any import restrictions unimplementable as a large swathe of Libyan businesses are deemed small businesses. Any such restriction would have been deemed as draconian and unjust and would have likely invoked a social, political and even security reaction to Libya’s weak state and government.

There have also been persistent accusations by small traders over the years of corruption within Libya’s banking system (taking advantage of the black-market FX rate margin of the dinar) in the allocation of LCs to big businesses. It is also well documented that many big businesses had exploited their LC facilities to engage in LC corruption.

However, the CBL has now announced the implementation of foreign payments transfers facilities, including up to US$ 100,000, for small traders to fill this gap. If this new transfer product does indeed succeed – the CBL may succeed in plugging this hole that had destabilised the foreign exchange market, the value of the dinar, the state subsidy budget and the whole Libyan economy.

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