Libyan central bank to print 30 billion dinars
The central bank of Libya, or CBL, said on December 5th that it had contracted British banknote printer De La Rue to print 30 billion dinars, or $6.250 billion, according to Reuters. It said it was doing this in order to “solve the liquidity shortage problem” at Libya’s commercial banks.
On December 1st, the CBL said the liquidity shortage problem would be “gradually solved” by January 2025 in according with a plan approved by the board of directors.
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Libya has for years had a liquidity shortage, with Libyans have to queue outside banks for cash and salaries since Gaddafi was toppled 13 years ago.
Its economy is strongly reliant on oil revenue, while the largest percentage of spending is on state payrolls amounting to 48.6 billion dinars for January to October out of oil revenue of $67.8 billion dinars during that period, according to CBL data.
Libya has an exchange rate of 4.8 dinar to $1.
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The bank said in a statement that Naji Issa, CBL governor, met on December 4th with De La Rue CEO Clive Vacher and regional manager Michael Wilson to discuss the implementation of the contract.
They added that “the meeting also discussed the schedule of dates for receiving the various shipments of currency.” CBL said it planned to withdraw old banknotes according to a timetable, but did not disclose any further details.
Libya is currently split between two rival administrations, one in the west and one in the east of the country.
Reuters
