According to the Central Bank’s revenue and expenditure statement for the period from January to May, foreign currency revenues amounted to $8.7 billion. However, the total foreign currency usage during the same period was $14.3 billion, resulting in a deficit of $5.6 billion.
In response to this deficit, the Central Bank of Libya has issued instructions to commercial banks to regulate the process of obtaining foreign currency. This will be done through the issuance of electronic cards, which will be loaded for the purpose of financing the import of supplies, equipment, and services for industrial, service, and commercial purposes for companies, small traders, and artisans. The conditions for these cards are as follows:
– The maximum value and limit for loading the card is $500,000 per year.
– The card can only be used for purchases and payments through points of sale for industrial, service, and commercial purposes.
– The card is not to be used within the local market.
– Commercial banks are urged to issue new products for electronic cards dedicated to industrial, service, and commercial purposes.
In the past week, the Central Bank of Libya has opened 370 letters of credit for companies specializing in the import of foodstuffs, essential goods, meat, livestock, pharmaceuticals, cosmetics, electronics, building materials, home furniture, and more.
The Central Bank’s bulletin on the letters of credit granted to Libyan traders indicates that the credits, issued in both dollars and euros, are expected to invigorate the local market with a variety of goods and products. This measure is also seen by economic analysts as a way to help keep the prices of goods from inflating.
Libya has been in chaos since a NATO-backed uprising toppled longtime leader Muammar Gaddafi in 2011. The county has for years been split between rival administrations.
Libya’s economy, heavily reliant on oil, has suffered due to the ongoing conflict. The instability has led to fluctuations in oil production and prices, impacting the global oil market and Libya’s economy.
The conflict has led to a significant humanitarian crisis in Libya, with thousands of people killed, and many more displaced. Migrants and refugees using Libya as a transit point to Europe have also faced dire conditions.
The planned elections for December 2021 were delayed due to disagreements over election laws and the eligibility of certain candidates. This delay has raised concerns about the feasibility of a peaceful political transition.
Despite the ceasefire, security remains a significant concern with sporadic fighting and the presence of mercenaries and foreign fighters. The unification of the military and the removal of foreign forces are crucial challenges.
