Faced with an intense liquidity crisis amid an over ten-year tension, the Central Bank of Libya has order for the printing of 30 billion dinars to resolve its cash shortage. It passed the order on Thursday highlighting that it intends to curb this problem gradually till January 2025.
In a bid to to resolve the nation’s looming economic impasse, the Central Bank of Libya (CBL) announced on Thursday it plans to print 30 billion dinars ($6.250 billion) in order to « solve the liquidity shortage problem » at the country’s commercial banks. According to the bank it has contracted British banknote printer De La Rue.
The central bank said last Sunday that the liquidity shortage problem would be gradually solved as of January in accordance with a plan approved by the board of directors.
Libya has been reeling from an economic crisis despite its oil wealth. The nation has had a liquidity shortage for years, with citizens having to queue outside banks to get cash and salaries since the regime of Muammar Gaddafi was ousted in 2011.
Libya’s economy is heavily reliant on oil revenue, while state payrolls represent the largest percentage of spending, amounting to 48.6 billion dinars for January-October out of oil revenue of 67.8 billion dinars during that period, as per to central bank data.
In a statement released on a Wednesday CBL’s governor Naji Issa met with De La Rue CEO Clive Vacher and Michael Wilson, the company’s regional manager, to discuss implementing the contract
While there are speculations that the bank will withdraw old banknotes, the bank reiterated that the meeting discussed the schedule of dates for receiving the various shipments of currency.
Libya has been split since 2014 between warring western and eastern administrations with rival factions seizing control of key economic institutions.
