An official source at the Central Bank of Libya (CBL) revealed to Libya Herald that, starting next Sunday, the Bank will begin distributing cash liquidity to commercial bank branches across the country.
This move is part of an August plan aimed at improving cash availability and easing the burden on citizens.
There is, it must be noted, still a serious cash shortage across Libya.
LD 3,000 to 4,000 cash withdrawal limits are subject to increase
The source explained that the initial cash withdrawal limit would be 3,000 dinars per customer in the western, eastern, and central regions, while reaching 4,000 dinars in the southern region. He emphasized that these limits are subject to increase in the coming period, depending on available liquidity and the specific needs of each region.
The source noted that the CBL Governor and his Deputy held a meeting today with the general managers of major commercial banks. During the meeting, an operational plan for August was approved, focusing on four key pillars:
1. Ensuring cash liquidity
2. Enhancing electronic payment services
3. Streamlining the sale of foreign currency allocations to citizens
4. Improving banking service quality while accelerating transaction processing within branches
e-payments from January to July totalled LD 643 billion
The source affirmed that the CBL is continuing to implement a strategy aimed at reducing reliance on physical cash by expanding electronic payment services. He pointed out that the total value of electronic transactions in Libya reached 643 billion dinars between the start of 2026 and the end of July. The source said this figure reflects the rapid growth in the use of modern payment methods in Libya.
e-transactions forecast to exceed one trillion dinars by end of 2026?
The CBL source added that current indicators suggest the value of electronic transactions will exceed one trillion dinars by the end of the year, driven by the continued expansion of points of sale, increased reliance on digital banking applications and services, and measures taken by the CBL to modernize the banking sector and enhance financial inclusion.
Comment: But the CBL is still forced into imposing cash withdrawal limits!
It must be noted, however, that after all that is said and done by the CBL, and despite all its efforts since last year, and beyond – the CBL is still forced to impose a cash withdrawal limit. The CBL is preventing Libyan citizens from free access to their money in their bank accounts.
It must be asked: What message does the imposition of cash withdrawal limits in the post-Qaddafi era of 2026 send to Libyan citizens and to the world? Do cash withdrawal limits encourage Libyan citizens to deposit their cash in their bank accounts if they cannot have free access to it?
While the CBL may perceive the LD 3,000 to 4,000 withdrawal limit as a high figure, in reality, when accounting for the ongoing inflation and the ongoing high cost of goods, it is not a high number.
Ultimately, why has the CBL still failed to resolve Libya’s cash crisis despite all its efforts?