The Second Deputy Speaker of the House of Representatives, Misbah Douma, explained that the decision to appoint the Central Bank of Libya’s Board of Directors will have a positive impact on the country’s economic situation. He emphasized that this is the result of collective work recommended by the Exchange Rate Study Committee, which involved many officials and economic experts.
Douma added, “We are awaiting the formation of a new government to oversee the general elections that Libyans aspire to.”
The Central Bank of Libya welcomed the decision issued by the Presidency of the Libyan House of Representatives in 2024 regarding the appointment of the members of the Central Bank’s board of directors. With this national milestone, the board looks forward to carrying out its duties as mandated by Law No. (1) of 2005 on banks and its amendments.
The Central Bank also stressed the importance of implementing necessary structural reforms for the recovery of monetary policy, in line with the aspirations of the Libyan people.
Businessman Husni Bey stated that the Central Bank of Libya has reserves of currency and gold amounting to nearly 90 billion dollars, while the total supply of Libyan money, including banknotes and deposit balances, does not exceed 150 billion dinars, equivalent to 32 billion dollars. This amount of reserves allows the Central Bank to purchase all dinars with less than 30% of its foreign currency and gold reserves, and the Central Bank can dry up the entire supply of dinars whenever it desires.
Husni Bey explained that it is impossible for the parallel market to resist or challenge the strength of the Central Bank unless the government or both governments expand their spending beyond their annual general revenues. After the reforms implemented by the Central Bank over the past two weeks, we cannot accuse it of failure. Conversely, the governments should not expand public spending and must also carry out reforms in subsidies and improve public expenditure management.
Bey emphasized that any collapse of policies will result from government spending expansion exceeding annual general revenue. The primary causes of the dinar’s collapse lie in financing budgets through deficits by creating dinars out of thin air or through the growth of dollar reserves. At the same time, the Central Bank creates dinars from nothing, leading to an increase in the money supply and rising debts of the Central Bank through the monetary base.
The Governor of the Central Bank of Libya, Naji Issa, and his Deputy Marai Al-Barassi discussed today, Thursday, with the general managers of major banks the resolution of the cash shortage crisis, the development of electronic payment services, the modernization of banking systems, and the regulation of foreign currency sales, as well as the reactivation of exchange offices.
During the meeting, they also reviewed the Central Bank’s plan to provide cash liquidity in the coming weeks. The Central Bank has initiated a plan to allocate 15 billion dinars to all operating banks in the upcoming months, with the actual distribution of liquidity to all bank branches set to begin in early November.
Additionally, they discussed electronic payment services and the expansion of issuing bank cards, which will support addressing the liquidity shortage problem. As part of organizing the foreign currency market, they talked about starting to grant licenses to exchange companies and organizing their operations, with an announcement on the actual commencement of accepting applications starting mid-November.
Minister of Social Affairs in the Government of National Unity, Wafa Al-Kilani, met with Minister of Finance Khaled Al-Mabrouk and Minister of Education Mousa Al-Maqrif to finalize the procedures for disbursing the student grant tomorrow, Thursday, and the third quarter of the wife and children’s grant next week.
Prime Minister Abdul Hamid Dbeibeh instructed the relevant ministries to study the possibility of providing a 200-dinar grant for each academic term for the current school year.
On Tuesday, the head of the Audit Bureau, Khaled Shakshak, along with deputy Atiyat-Allah Abdel Karim, met with the general manager of the Libyan Foreign Investment Company, Mousa Atik, to review the company’s performance, future plans, and challenges it faces.
The meeting addressed the company’s assets and their evaluation, internal auditing, and the development of its human resources. It also discussed the work of the investment and compliance departments, the company’s four-phase strategic plan for the coming years, as well as governance, approved regulations, and proposed regulations pending approval.
The meeting concluded with the need to continue implementing governance manuals, updating and approving regulations, and setting up a meeting between the Libyan Investment Authority and the Libyan Foreign Investment Company to approve the governance manuals.
The Minister of Labor and Rehabilitation in the Government of National Unity, Ali Al-Abed, met with the Egyptian Chargé d’Affaires in Tripoli, Tamer El-Hefny, on Tuesday to discuss ways to regulate the presence of Egyptian labor in Libya and encourage them to legalize their status.
Al-Abed emphasized the importance of Egyptian workers adhering to Libya’s legal procedures to improve the work environment and provide legal and safe opportunities for all workers. The Egyptian ambassador praised the efforts of the Ministry of Labor in organizing Libya’s labor market and expressed the embassy’s readiness to offer necessary support to ensure the rights of Egyptian workers and facilitate their legal processes.
The two sides concluded the meeting by stressing the importance of enhancing cooperation between the two countries in labor organization, highlighting the role of the “Wafed” platform launched by Libya’s Ministry of Labor to facilitate the registration and legal status settlement of foreign workers, including Egyptian laborers.
Our source from the Central Bank of Libya revealed that the bank has instructed all commercial banks, their branches, and agencies to remove all limits on cash withdrawals, cancel restrictions and limits on certified checks, and eliminate caps on transfers. Additionally, it has ordered the reduction of fees for electronic services.
Banks are also required to publish these instructions on their websites.
A source from the Central Bank of Libya revealed to Tabadul channel on Monday the new regulations governing foreign exchange transactions and the opening of letters of credit.
Among the regulations is the increase of the annual limit on personal use cards from $4,000 to $8,000. The maximum limit for loading industrial, service, and commercial cards for companies, small traders, and craftsmen has been set at $500,000, or its equivalent in other foreign currencies per year.
Prime Minister Abdul Hamid Dbeibeh held a meeting on Monday with the head of the Audit Bureau, Khaled Shakshak, the Minister of State for Cabinet Affairs, the Chairman of the National Oil Corporation, the head of the Libyan Investment Authority, and directors of oversight departments for sovereign sectors, energy, public companies, investments, and banks.
The meeting focused on discussing several investment projects aimed at developing the energy sector and increasing oil and gas production. Emphasis was placed on monitoring legal and technical procedures to reactivate the Ras Lanuf refinery, which has been halted since 2013, following the purchase of the foreign partner’s share. The need to upgrade aging pipelines to support the National Oil Corporation’s plan for increased production was also highlighted.
Additionally, the meeting addressed the mechanism for fuel payment for 2025, setting controls on quantities and supply methods, and resolving this issue. They also discussed activating the Bab Tripoli investment project, which is vital for improving services for citizens, in line with the Audit Bureau’s proposed regulations. The importance of increasing transparency and disclosure in all contracting procedures related to the oil sector was emphasized.
