Central Bank of Libya announces strategy to improve liquidity
The Central Bank of Libya (CBL) announced the imminent launch of a new national strategy to regulate the distribution of cash at the national level, as reported by Libya Eye on July 24th.
The move has been described as aimed at achieving regular access to cash to all branches and agencies of commercial banks, and ensuring that the needs of citizens in various cities and regions are met without exception.
In a statement from the CBL, the new strategy was explained to come after the receiving of new shipments in successive quantities of the newly printed national currency, as part of a plan aimed at strengthening the cash reserves present in commercial banks, while raising the efficiency of liquidity distributions, alongside growing the stability of the banking system.
The Central Bank of Libya confirmed that the plan will include all branches and agencies of commercial banks across Libya, as a way to ensure the regular access of liquidity to various regions, and reduce the disparities witnessed in some cities. It pointed out that the new banknotes were designed and produced using the most recent international technologies in the field of currency printing, with new security specifications that increase their resistance to counterfeiting, which ultimately protects the national currency while maintaining the integrity of cash circulation and the broader financial system.
The new strategy aims to improve the efficiency of liquidity management across the banking system, and ensure a balanced and fair distribution, which is reflected in the level of services provided to citizens, reduces congestion inside of branches, and prevents customer suffering in obtaining cash dues. The strategy reflects the Bank’s approach towards developing cash management on a more efficient basis, combining enhancing the money supply, improved distribution mechanisms, and overall raising the level of security protection of the national currency, in a way that supports financial stability and enhances the confidence of citizens and customers in the banking sector.
The cash file is a major challenge faced by the Libyan banking sector over the past years, as some areas have witnessed a disparity in the availability of cash present at banks, which has caused branch congestion and increased demand toward cash withdrawals. As a way to combat the challenge the Central Bank of Libya has been implementing programs and procedures directed at improving distribution and security of the national currency to ensure liquidity is present for all citizens on a regular basis.
Libya Eye, Maghrebi.org.
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