CBL to injects 15 billion dinars into banking system

The Central Bank of Libya (CBL) is taking steps to address the country’s ongoing liquidity challenges. From Sunday 3rd November 2024, the CBL will introduce 15 billion Libyan dinars into the banking system to ease cash shortages and boost public confidence.

This initiative follows a meeting between CBL Governor Naji Essa, his deputy Marai Al-Barassi, and senior banking executives at the CBL’s headquarters in Tripoli. The meeting centred on finding solutions to the liquidity crisis, including:

• Increasing the availability of cash: The CBL plans to distribute 15 billion dinars across Libyan banks in the coming months, starting on 3rd November.
• Expanding electronic payments: The CBL is encouraging banks to issue more debit and credit cards to customers and promote their use, thereby reducing reliance on physical cash.
• Improving foreign exchange: The CBL will issue licences for new exchange bureaus from mid-November to better regulate the currency market and facilitate access to foreign currency.
• Enhancing remittance services: The CBL aims to speed up money transfers for citizens and expatriate workers.

These measures are being implemented as Libya contends with the effects of political instability, fluctuations in oil revenue, and a lack of public trust in the banking system.

The CBL’s proactive approach, under the leadership of Governor Essa and Deputy Governor Al-Barassi, signals a commitment to stabilising the financial system and restoring confidence in Libya’s economy.