In a statement posted on social media by Misrata Chamber of Commerce, small and medium-sized enterprises (SMEs) and small traders affiliated to the Chamber, expressed their dismay and condemnation during a protest outside the Chamber, of the Minister of Economy and Trade’s Decision No. 42 of 2025, which prohibits imports except through banking transactions approved by the Central Bank of Libya (CBL).
The statement issued emphasized that implementing this decision, given the difficult economic conditions the country is experiencing and the deteriorating banking situation, will lead to disastrous consequences, including a complete halt to trade.
They also emphasized that the CBL has not fulfilled its commitments to open new Foreign Exchange companies and provide alternative channels for small traders to transfer their money abroad, such as issuing international bank cards for traders with appropriate deposit limits.
The statement indicated that these cards should work in all countries of the world, especially in China and Korea, where Libyan banks do not accept bank credit systems.
The protesters added that opening bank credits with complex and undisclosed terms could exacerbate the situation and increase the suffering of SMEs.
The statement called on the Attorney General to activate the role of oversight and regulatory bodies to hold accountable speculators and crisis traders who contribute to the worsening economic crisis. They also called for immediate intervention to halt the implementation of Resolution No. 42 until the country’s banking situation improves.
They also called for the CBL to be obliged to provide all recognized banking payment methods, enabling all companies and economic sectors, including small traders, to continue their work.
The statement emphasized that members of the Misrata Chamber of Commerce will continue to escalate their protests against the monetary policies pursued by the CBL until justice is achieved in the fair and equitable distribution of hard currency to meet citizens’ needs.
The protesters expressed their full commitment to implementing the laws and regulatory decisions, stressing the need to find radical solutions that preserve the stability of the national economy and protect the rights of all stakeholders.
Comment and analysis
The protest by small importers highlights the ongoing battle between them and the CBL with each seeking to further their own interest.
The CBL, probably under international pressure, is determined on the one hand to control money laundering by limiting imports to those transacted through official banking transactions. It is also seeking to strengthen the Libyan dinar by limiting demand for the US dollar on the black-market, which contributes to lowering inflation and strengthening the standard of living of Libyans.
Small importers: victims of weak government and state institutions?
However, small importers see themselves as victims of Libya’s weak governance and institutions. They feel they are paying the price for weak government and CBL policy. They consider themselves as playing a vital role in supplying the Libyan market, especially at short notice, of goods that big business cannot or is unwilling to import. They feel they provide competition for big business and help break their monopoly and keep prices down.
Small importers feel they are unable to obtain letters of credit that they feel are monopolised by big business at their expense.
Moreover, many of these small importers trade with counterparts in Tunisia and Egypt who also deal in cash and are unable to transact in banking transactions. This applies especially to seasonal goods such as fruit and vegetables brought in by truck across the land borders.
Finally, and as contained in the small importers’ protest statement, the CBL is not equipped to provide alternative and easier banking services for them that would enable small importers to pay using credit/debit cards abroad. This failure in the provision of service sophistication, beyond the complicated, costly and time-consuming Letters of Credit discriminates against small businesses who outnumber big business.
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All imports into Libya must be paid for through official bank transactions
Acting Economy Minister meets smaller merchants objecting to restricting imports to official banking transactions
Tunisian goods entering Libya by land will no longer need to be paid for through Letters of Credit (libyaherald.com)
CBL allows for opening of LCs for imports through land borders (libyaherald.com)
Tripoli Libyan government reverses decision on imports needing LCs (libyaherald.com)
Imports at ports not paid for by LCs will no longer be released after 31 December (libyaherald.com)
Libyan imports to continue to be allowed to enter without Letters of Credit payment prerequisite (libyaherald.com)
Tripoli Libyan government reverses decision on imports needing LCs
https://www.libyaherald.com/2020/11/18/imports-at-ports-not-paid-for-by-lcs-will-no-longer-be-released-after-31-december
