Central Bank of Libya Announces Fund Allocation to Tackle Cash Shortage

The Central Bank of Libya has announced it will inject US$1 billion next week to finance letters of credit, alongside another US$1 billion allocated for personal foreign currency allowances and online booking requests. Banks will also extend their working hours to facilitate cash US dollar sales.

The bank also announced the launch of the first phase of its August plan, which includes injecting LYD 5 billion (US$780 million) into commercial banks to improve cash availability for citizens. The plan also focuses on expanding electronic payment services and addressing challenges facing payment companies and banks.

The measures were announced following a meeting between Central Bank Governor Naji Issa and senior bank officials, during which they reviewed developments in the Libyan dinar’s exchange rate on the parallel market and discussed steps to contain rising demand for foreign currency and support exchange rate stability.