Libya’s Central Bank announced it sold $2.1 billion in foreign currency during the first half of December, highlighting ongoing efforts to stabilise the local market amid mounting pressure on the dinar.
In a statement, the bank said the sales covered the period from December 1 to 16 and were mainly allocated to letters of credit, which accounted for $1.5 billion. An additional $164.8 million was sold for remittances, $334.3 million for personal purposes, and $50.4 million through small traders’ card programmes.
Despite these sales, the bank revealed that outstanding demand remains high. Unexecuted letters of credit and remittance requests totalled $1.9 billion, while pending personal-purpose allocations stood at $388 million. Suspended small trader card requests were valued at $23 million.
The Central Bank also disclosed that oil revenues transferred to its accounts during the same period amounted to only $410 million, underscoring a widening gap between foreign currency inflows and market demand. This imbalance continues to place strain on Libya’s financial system and contributes to volatility in exchange rates.
Addressing the recent rise in the parallel market exchange rate, the bank attributed the trend to speculative activity. It said market disruptions caused by the closure of some commercial outlets, combined with tighter compliance checks, had fuelled demand outside official channels. The bank noted that enhanced anti-money laundering and counter-terrorism financing controls, implemented in cooperation with international partners since early November, have also slowed some transactions.
The Central Bank reaffirmed its commitment to selling foreign currency regularly and at volumes intended to meet market needs. It stressed that these operations remain a core tool for maintaining relative stability in the exchange rate and supporting legitimate trade.
However, the bank urged relevant government ministries to take stronger action to regulate imports and curb the flow of goods entering Libya through informal channels. It warned that unchecked parallel-market activity, without oversight of funding sources, continues to undermine economic stability and complicate monetary policy efforts.