On Saturday, the Benghazi-based Central Bank of Libya (CBL) reported that the Tripoli-based CBL had delivered over 4.6 billion Libyan Dinars (LYD) in cash to commercial banks operating in the eastern region. This amount was delivered during the period from January to April 2023
In a statement, the Benghazi branch of the CBL said this came within the framework of efforts to alleviate the liquidity crisis affecting citizens, and because of the joint work between the CBL of Libya Benghazi and Tripoli.
The CBL in Benghazi said it should also be noted that these efforts have significantly contributed to raising the level of e-payment services through self-withdrawal machines. This in addition to removing most of the restrictions placed on accepting instruments and clearing work on a regular basis.
It assured that these efforts will continue throughout the coming period to alleviate the cash liquidity crisis and gradually restore confidence between the citizen and the banking sector.
Notably, the Benghazi branch recently said that the CBL in Tripoli is “still behaving with a mentality of division, and disregard to the unification process.”
The bank added, “we are surprised that Tripoli’s CBL sends official correspondence to commercial banks informing them that they can obtain cash from the issuance departments, including Benghazi. At the same time, it refrains from providing sufficient liquidity to the administration of Benghazi’s branch.”
It confirmed that “if we are not provided with an adequate budget of 500 million LYD, we will resort to alternative solutions. We hold the CBL in Tripoli responsible for the apparent failure to manage liquidity, which is carried out randomly.”
“We tried to direct them with official letters to develop a method for planning and organizing liquidity in a scientific and organized manner, but unfortunately there was no response. We were surprised when we were notified that cash will be sent when reserves are at 50 million LYD. This amount is not suitable for the treasury of a central bank,” the statement said.
The bank confirmed that the Tripoli branch sent “money in bags that are difficult to count, sort, and link, which is time-consuming, not to mention the differences that occur as a result of this primitive method.”
