Libya places 7% ceiling on foreign exchange profits
Libya’s Central Bank has moved to regulate the nation’s foreign exchange market with new directives aimed at standardising profit margins for licensed currency traders.
In a circular issued yesterday, the Bank’s Supervision Department instructed all authorised exchange houses that foreign currency purchased from central reserves may only be resold to citizens with a maximum 7 per cent markup.
The measure forms part of wider efforts to bring stability to Libya’s volatile currency market, which has suffered from significant fluctuations in recent years.
“We will be conducting rigorous field inspections to ensure full compliance with these regulations,” said a senior Central Bank official. The Bank warned that non-compliant traders face severe penalties, potentially including the permanent revocation of operating licences.
Financial analysts suggest the move represents a significant step towards greater transparency in Libya’s currency exchange sector, which has faced criticism for opaque practices and inconsistent pricing.
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