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Author: LS

New CBL Statement Shows National Commercial Bank as Top Recipient of Foreign Currency in 2023

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Today, Tuesday, the Central Bank of Libya published a statement of the total amounts of foreign exchange sold to commercial banks during the year 2023 until the end of October, which amounted to more than $17.5 billion. The National Commercial Bank topped commercial banks in total foreign exchange sold with a value exceeding $203 billion.

According to the Central Bank statement, the total amount sold to the National Commercial Bank reached 2 billion and 308 million dinars. Wahda Bank amounted to 2 billion and 154 million dinars, followed by the Jumhouria Bank with a value of 2 billion and 59 million dinars, then Aman Bank with a value of one billion and 819 million dinars.

As for the total documentary credits during the year 2023, it amounted to approximately 10.2 billion dollars, the largest share of which was to Wahda Bank, with a value of one billion and 844 million dinars. Then comes Nuran Bank, with a value of one billion and 185 million dinars, followed by Jumhouria Bank, with a value of one billion and 137 million dinars. The National Commercial Bank reached a value of one billion and 65 million dinars.

Libyan Dollar Exchange Rate Exceeds 6 Dinars in Parallel Market: Al-Ghwil Explains

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Parallel Dollar Exchange Rate Hits 6 Dinars

A currency trader confirmed to our source on Monday evening that the dollar exchange rate continued its insane rise, breaking the barrier of 6 dinars per dollar, for the first time in a long time, without clarifying the actual reasons for this rise.

The dollar exchange rate has witnessed remarkable stability for some time, and the price ranged between “5.10 and 5.30” dinars per dollar, throughout the nine months of the current year 2023, before it began to rise significantly during the second half of October, recording a price of 5.60 dinars per dollar by the end of the month. .

At the beginning of the current November, the exchange rate in the parallel market continued to rise, reaching 6 dinars to the dollar. This value was not reached for a long time, especially in light of the stability of the security situation in the country and the continued normal flow of oil.


Al-Ghwil Reveals: Why the Exchange Rate is Surging

The head of the Competition and Antimonopoly Council, Salama Al-Ghwil, said in a special statement to our source that the reason for the rise in the price of the dollar in Libya is that the government lacks the ability of making political and economic decisions on the country, the monopoly of some merchants on private contracts with the state, and the lack of control over the economic, political and commercial relationship between Libya and other countries.

The head of the Competition and Antimonopoly Council, Salama Al-Ghwil

He explained that speculation among merchants is to achieve a gain by selling the currency and buying it back at a certain price to achieve a financial gain. Furthermore, there is no real control over the market, and this increases the price of the dollar’s

Al-Ghwil added that the rise in US interest rates, the rise in the price of the dollar, leads to an increase in the cost of imported goods, and may contribute to high inflation rates and a decrease in the purchasing power of citizens.

The National Oil Corporation reveals the total fuel shipments imported from abroad for the past month of October

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The National Oil Corporation, in a statement on Wednesday, revealed the total shipments of gasoline and diesel imported from abroad during the current year 2023.

The Corporation stated in its release that the total shipments of gasoline for automobiles imported from abroad in the past month of October reached approximately 473,000 metric tons. The total diesel fuel imported during the same period exceeded 663,000 metric tons, totaling approximately 1.14 million metric tons in just one month.

Exclusive: Conclusion of the Second Workshop on Transitioning to the Latest Banking Supervision Standards and Requirements

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Today, on Wednesday, the second workshop on transitioning to the latest banking supervision standards and requirements concluded, organized by the Banking and Monetary Supervision Department of the Central Bank of Libya, with the presence of all risk management departments of commercial banks operating in Libya.

The head of the Audit Inspection Team at the Central Bank of Libya, Atef Al-Abar, talked to our source about the significance of the workshop’s proceedings. He emphasized its role in the development of the Libyan banking sector, the transition from traditional to risk-based supervision, and compliance with the Central Bank’s directives regarding Basel III instructions. He clarified that the application of these standards in commercial banks is not far off and will be phased in.

Anas Rishwan, the Director of the Basel Operations Unit in Banking Supervision at the Central Bank, in a statement to our source, discussed the management strategy for banking and monetary supervision regarding the transition to risk-based regulatory instructions. He mentioned its distinctiveness, as this is the second practical application for commercial banks and the selection of a sample to showcase its experience. He also touched upon compliance with banking instructions, adding that the Central Bank will issue instructions related to environmental and climate risks to educate banks about these risks.

Aboubakr Al-Amin, the Head of the Monitoring Department in the Banking Supervision at the Central Bank, told our source about the workshop’s goal to enhance a culture of risk cooperation within banks and to implement recommendations made in the previous workshop, achieving them at the banking sector level. He explained that this workshop will yield practical results in the upcoming phases and is related to governance concerning Islamic banks.

ElKabir launching the second workshop aimed at aligning with the most current banking supervision standards and requirements

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In a recent development, ElKabir has officially launched the second workshop to bring banking supervision up to date with the latest standards and requirements. The event, organized by the Supervision Department, saw the presence of ElKabir himself along with his deputy, Marai Al-Barasi, the Director of the Banking and Monetary Supervision Department, directors of risk departments, and heads of units responsible for implementing Basel instructions in banks. This initiative is a significant step in enhancing the oversight of the banking sector.

The founding committee of the African Investment Bank discusses the strategy for ratifying its establishment

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During its third regular meeting, the founding committee of the African Investment Bank discussed the strategy for ratifying the agreement establishing the Bank. It was prepared by the international consulting office KPMG at the invitation of the African Union Commission to strengthen the guarantee for the establishment of the banking. This was in the presence of the Advisor to the Governor of the Central Bank of Libya, Mustafa Al-Manea, and the State Minister for Prime Minister and Council of Ministers Affairs and member of the committee, Adel Jumaa.

The meeting reviewed the report of the Ghanaian President Advocating Financial Institutions of the African Union at its 36th session, which was held in Addis Ababa last February.

Al-Manea confirmed that the founding committee, in coordination with the Ministry of Foreign Affairs of the National Unity Government, obtained the ratification of 6 African countries, noting that work is underway to coordinate with the rest of the African countries.

For his part, Adel Jumaa affirmed the government’s keenness and full support with all its ministries and agencies, in order to achieve this national and continental entitlement.

It is noteworthy that the African Investment Bank was established at the African Union summit held in Nigeria in 2008, with Libya as its headquarters.

This came in implementation of the decision of the Prime Minister of the National Unity Government, Abdul Hamid Dbeibeh, No. 319 of 2022, requiring the formation of a founding committee for the bank to activate this decision due to the importance of this African economic institution, and for Libya to undertake the establishment initiative.

Libyan Government Expenditures: Audit Bureau Report Unveils Key Insights

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Libyan State’s 2022 Resources and Expenditures

The report from the Audit Office revealed on Wednesday that the resources of the Libyan state in 2022 reached 177 billion Libyan dinars. Government expenditures amounted to 171 billion Libyan dinars in just one year. Additionally, in 2022, Libya imported fuel worth 42 billion LYD through the National Oil Corporation via oil exports without recording it in the state’s accounts.

The report also stated that the total expenditures of the Libyan state from 2012 to 2022 amounted to 656 billion Libyan dinars. The majority of spending occurring in the past two years, totaled 273 billion dinars in 2021 and 2022.

Financial Revelations: Surge in Subsidies, Detained Funds, and Central Bank Assets

The report further revealed that the budget for subsidies increased from 37.4 billion dinars in 2021 to 62.7 billion dinars in 2022. This means that the value of support exceeded 7,000 dinars per person.

The report also disclosed the detention of 16 billion dinars in the deposits and trusts account at the Central Bank of Libya, which were earmarked for the third sector and had disbursement orders from the Ministry of Planning, issued by the head of the National Unity Government. These funds have not been allocated to the sectors.

According to the report, the total assets of the Central Bank of Libya at the end of 2022 amounted to approximately 527 billion dinars. This includes domestic assets valued at 127 billion dinars, foreign assets valued at 82.8 billion dollars (approximately 400 billion dinars). This is in addition to a gold reserve valued at 46.9 million dinars. The total public debt, according to the Central Bank of Libya’s data, reached about 84 billion dinars, without taking into account the public debt incurred by the interim government in the eastern part of the country due to the absence of official data regarding it.

The Audit Bureau report also clarified that the total assets of the Libyan Investment Corporation increased to 71.3 billion dollars by the end of 2022, up from 70.6 billion at the end of 2023.

The report indicated that the total financing authorizations for development expenditures in 2022 amounted to more than 33.6 billion dinars, of which 17.1 billion dinars were disbursed to the beneficiary entities, and 16.5 billion dinars were allocated by the decision of Dbeibeh to various entities but have not been disbursed and were detained in the deposits and trusts account at the Central Bank of Libya.

Al-Kabeer Attends the “Future Investment Initiative” Conference in Riyadh

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The “Future Investment Initiative” conference, themed “The New Compass,” kicked off its 7th session in Riyadh, the capital of Saudi Arabia. The event saw the participation of Seddiq Al-Kabeer, the Governor of the Central Bank of Libya, along with leaders from prominent international banks and financial companies.

The conference revolved around a wide array of global challenges encompassing economic, geopolitical, climate change, governance, education, and healthcare domains. Its primary objective was to bolster international collaboration and underscore the necessity of working together to address the world’s pressing challenges.

Hannibal Gaddafi’s Swiss Crisis Derails Derna Dams Repair Deal

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Libya’s former regime had initially entered into a 670,000 euro contract with the Italian consulting firm IRD Engineering to oversee the maintenance of the Derna dams. However, this agreement was terminated due to a diplomatic crisis between Libya and Switzerland in 2008. The maintenance was expected to take 60 months, as indicated in a preliminary report prepared by two Swiss companies, Stucki SA and Norbert SA, on behalf of IRD Engineering.

The diplomatic conflict between the two countries arose when Hannibal Gaddafi and his wife were arrested in Geneva in July 2008, accused of physically assaulting two domestic employees while staying at a luxury hotel. This arrest led to a two-year-long dispute, during which Libya halted oil supplies, withdrew substantial funds from Swiss banks, imposed visa restrictions on Swiss citizens, and recalled several of its diplomats. This turmoil ultimately led to the cancellation of the maintenance contract.

Adapted from Africa Intelligence

Exclusive: Our source reveals that the Central Bank has reduced the list of companies banned in the UAE from 109 to 15 companies

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Our source at the Central Bank of Libya revealed on Thursday that the Central Bank has reduced the list of companies banned in the UAE from 109 to 15 companies. The other companies have now been lifted and can operate normally.

This came as a follow-up to the Central Bank’s letter, in which it asked banks to ban dealing with beneficiary companies in the UAE, and to complete investigations with the Attorney General’s Office.