Libya: bank urges use of licensed foreign exchange offices
The Central Bank of Libya (CBL) has instructed all foreign missions and international organisations in Libya to advise their citizens to use only licensed currency exchange offices for purchasing or selling foreign currency, the Libya Herald reported on February 13th citing a leaked CBL letter.
The letter stated that dealing in foreign currency outside the official channels is illegal. However, gold shops in the Old City’s Gold Market and other shops across the capital of Tripoli are reportedly openly buying and selling foreign currency. FX traders also reportedly gather daily in Clock Square in the Old City, a location situated near the central bank’s headquarters.
In two other separate letters, dated February 12th, the CBL Governor, Naji Issa, requested the Minister of Interior and the Head of the Municipal Guard to close all shops, companies and offices operating without final approval from the CBL to carry out foreign exchange activities.
Issa further called for legal action against anyone trading foreign currency outside the official channels and requested authorities to monitor the movement of funds in Libyan dinars and verify their legitimacy and sources.
The measures follow a February 5th report that said Libya’s Economy and Trade Minister, Mohamed Al-Hwaij, banned companies from pricing goods using black-market foreign exchange rates under Resolution No. 51 of 2026, requiring them to rely solely on official channels.
Western Libya under the Government of National Unity (GNU) administration faced renewed economic strain with weakening currency, budget pressures and fuel shortages, as reported on January 28th. The pressure was reflected in a sharp rise in the value of the US dollar on the parallel market after the official rate of the Libyan dinar was set at 6.31 per dollar. The move widened the gap between official and informal rates.
On February 11th, the dinar fell to 9.70 against the dollar, despite the CBL’s efforts to keep the exchange rate within the set range.
Libya Herald and agencies, Central Bank of Libya, Maghrebi.org
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