New shipment of Libyan currency lands in Tripoli
The Central Bank of Libya (CBL) have had a shipment of new Libyan banknotes arrive at Mitiga International Airport in Tripoli, as reported by the Libya Review. With a value of 434 million Libyan dinars, the shipment is on course to be transferred to the vaults of the CBL to be distributed to commercial bank branches across the nation.
This import of cash, printed abroad, is part of the CBL’s comprehensive strategy focused on restoring financial stability through ensuring a steady supply of cash across the country and addressing the liquidity crisis. Official data shows that over 65 million dinars have been distributed across commercial banks during the first 6 months of this year.Â
It is expected that this most recent delivery will be supporting areas dealing with cash shortages, in advance of the salary disbursement period and especially with the seasonal demand surge coming soon.
The Central Bank have stated that the initiative is based in the broader monetary policy surrounding increasing lasting confidence in the banking system and supporting the smooth operations of economic activity in Libya.
The importance of readily available cash to the countries financial stability follows the chaos brought on by Muammar Gaddafi’s deposition. In 2011 an uprising backed by NATO toppled Gaddafi’s government, leading to years of political infighting between rival administrations.
The economy in Libya had grown dependent on its oil, though the ongoing conflict harmed the industry, with instability in oil production and prices affecting not only Libya’s economy but also the global oil market, however recent developments in the industry have led to new hope for Libya’s oil economy.
With not only the economy suffering but the conflict has caused a significant humanitarian crisis in Libya, leading to thousands killed and countless more displaced.
In December 2021, the planned election was delayed owing to infighting surrounding election laws and the eligibility of certain candidates. The delay raised further concerns regarding the feasibility of a peaceful political transition.Â
Despite a current ceasefire, peace is tenuous with security, mercenaries, foreign forces and sporadic fighting being prominent concerns, alongside the crucial challenge of unifying the military.
The Libya Review, Maghrebi.org
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