CBL Slashes Foreign Exchange Tax to 15%

The Central Bank of Libya (CBL) has today announced a reduction in foreign exchange tax to 15% for all transactions, following a directive from the House of Representatives (HoR). The move seeks to streamline the process for opening letters of credit for goods and services.

The decision comes through Resolution No. 16 of 2024, issued by the HoR Speaker on 20 November 2024, according to an official CBL statement.

The new policy establishes a 15% fee on all foreign currency transactions at the official exchange rate, whilst maintaining existing exemptions approved by the HoR Speaker.

The framework permits potential future rate adjustments based on state revenues, with the Central Bank Governor and Deputy Governor authorised to propose such changes.

The implementation mechanism, outlined in the CBL’s circular, cites Law No. 1 of 2005 governing banking operations. Revenue generated will be allocated according to Law No. 30 of 2023, either funding development projects or contributing to public debt repayment.

“Banks are instructed to implement this decision immediately and facilitate documentary credit procedures for all purposes,” the CBL statement read.

The measure takes immediate effect, superseding previous regulations. This move represents the latest endeavour by Libyan authorities to manage foreign exchange policy and stimulate economic activity.

The decision modifies the existing foreign exchange fee structure and aims to streamline international trade procedures through the banking system.