A senior source at the Central Bank of Libya (CBL) revealed to Libya Herald that the bank has begun implementing a programme to sell foreign currency to commercial banks totalling $3.5 billion. This programme aims to meet the demand for foreign currency and support market needs, the source added.

The source explained that the bank has allocated US$ 1.5 billion to finance Letters of Credit, US$ 1 billion for various transfers, and an additional US$ 1 billion for personal use. He noted that implementation procedures have already begun.

All commercial banks received their cash dollar allocations this morning
The source added that all commercial banks received their required cash dollar allocations this morning, coinciding with the resumption of foreign currency sales for personal use.

Faster financing processes and meet customer needs
The source confirmed that the specialized teams in the CBL’s Letters of Credit Department are continuing to review applications and finalize the necessary procedures to issue new final approvals to banks regarding letters of credit and transfers. This will ensure faster financing processes and meet customer needs.

Supporting the stability of Libya’s economic activity
The source indicated that these steps come within the CBL’s efforts to enhance the flow of foreign currency into the banking sector, improve the level of services provided to individuals and companies, and support the stability of economic activity in the country.

It is worth recalling that the CBL is driving towards strengthening the Libyan dinar against the major hard currencies on the foreign exchange black-market to below LD 7.00 per dollar – closer to the official c. LD 6.5 per dollar. At the time of publication, one US dollar is trading at LD 8.39.