Libya Central Bank Supplies Over $1.2 Billion in Foreign Currency

A senior official at the CBL revealed to Libya Herald yesterday that the bank successfully supplied a new shipment of foreign currency yesterday, exceeding US$ 1.2 billion, including US dollars and euros. The source said this is part of the CBL’s ongoing plan to enhance foreign currency liquidity and meet the needs of the local market.

The source explained that the supply is part of an ongoing programme implemented by the CBL to ensure the stability of the foreign currency supply and secure the needs of commercial banks, thereby contributing to exchange rate stability and meeting the increasing demand for hard currency.

The source affirmed that the CBL continues to perform its technical and banking duties according to well-defined plans, despite what he described as “repeated attempts to disrupt the work of the current administration.” He emphasized that these attempts have not affected the progress of work or the fulfilment of financial and banking obligations.

These “repeated attempts to disrupt the work of the current administration” include fake rumours circulated on social media that Governor Issa intended to resign over the failure to bring the black-market exchange rate of the dinar down and the failure to protect the bank against the cyber-attack earlier this month.

Continuing, the source added that Governor Naji Issa’s administration continues to enjoy the confidence of financial institutions and international partners, which is reflected in the ongoing cooperation with correspondent banks and international institutions, and the successful completion of foreign currency import operations according to the highest banking standards.

The CBL source indicated that the bank’s success in bringing in these large amounts of foreign currency reflects the institution’s ability to manage reserves efficiently and maintain the smooth flow of financial operations. He emphasized that the bank will continue to take all necessary measures to ensure the stability of the banking sector and serve the national economy.

Finally, the source concluded by affirming that the next phase will witness the continued implementation of programmes aimed at strengthening monetary stability and maintaining local and international confidence in the performance of the CBL, which will positively impact the markets and the financial sector in the country.

Failure to bring the LD exchange rate down to below LD 7 per dollar
It will be noted, however, that despite the implementation of several policies, including a media campaign to talk-down the FX rate of the dinar and the direct sale of cash dollars to citizens and despite his vow last summer to bring the black-market exchange rate of the Libyan dinar down to below the LD 7 per dollar mark, the dinar has been consistently trading at above the LD 8 mark. Today it was trading at LD 8.53 per dollar.

Equally, a cash shortage still grips Libya despite most Libyans using their debit cards to pay for most of their payment needs.