The Governor of the Central Bank of Libya, Naji Muhammad Issa, followed up with the electronic payment companies and the relevant departments of the Central Bank, the stages of implementing the bank’s new strategy regarding developing electronic payment systems and services and developing the infrastructure through a short and medium-term plan for electronic payment, transferring the national distributor, and what is related to smart cards and raising the ceilings.
After presenting the difficulties and challenges facing banks, the governor directed his instructions “to begin reconsidering the commission rate on P.0.S, by determining the cost of the service (machine price, service commission), as well as preparing new standards and controls that regulate the work of electronic payment companies.” In addition to asking companies to have a clear business plan for the year 2025, which is specific to a strict time frame, includes data and numbers, and its implementation is monitored periodically.”
In addition, the governor directed “to reconsider all publications issued by the Banking and Monetary Control Department regulating electronic payment by the Central Bank of Libya, and the obligation of electronic payment companies to submit monthly reports to the Central Bank of Libya, including: (number of subscribers, number of electronic payment transactions, Charging electronic payment cards, transferring money, charging digital wallets, and paying bills.)
He also called on companies to strengthen and develop internal control systems to confront any risks related to electronic payment operations so that they are subject to evaluation by the Central Bank of Libya. He also called on companies to improve the quality of services and raise their level in accordance with the best standards, and to diversify and develop services, which will become an evaluation standard for the Central Bank of Libya from now”.
Last updated: November 7, 2024 – 19:11
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Interview Transcript: Time.news Editor with Naji Muhammad Issa, Governor of the Central Bank of Libya
Editor: Welcome, Governor Issa. Thank you for joining us today. There’s been a lot of discussion about the future of electronic payments in Libya, and your recent actions and directives are at the forefront. Can you start by explaining the main objectives of the Central Bank’s new strategy for electronic payment systems?
Governor Issa: Thank you for having me. The main objectives of our new strategy are twofold: to enhance the infrastructure for electronic payments and to improve the services associated with it. We’re focusing on developing a short and medium-term plan that addresses everything from national distributors to smart card enhancements. Our goal is to create a more efficient, transparent, and user-friendly electronic payment environment.
Editor: That sounds promising. You mentioned some challenges that banks are currently facing. Can you elaborate on what those challenges are and how your strategy aims to address them?
Governor Issa: Certainly. One of the primary challenges is the outdated infrastructure that many banks are operating with, which makes electronic transactions slow and inefficient. Additionally, there are issues with the commission rates on Point of Sale (P.O.S) transactions, which can deter businesses from fully adopting electronic payment solutions. Our strategy includes a thorough assessment of these commission rates and the establishment of new standards and controls for electronic payment companies, which will help to streamline processes and boost usage.
Editor: Interesting! You emphasized the need for a clear business plan for electronic payment companies for the year 2025. What specific aspects do you expect these companies to focus on in their plans?
Governor Issa: We are asking companies to develop comprehensive business plans that are data-driven and time-bound. This includes projections on growth, detailed operational strategies, and a framework for monitoring implementation. We want to ensure that these plans are realistic and that they contribute significantly to the overall strategy of modernizing electronic payments in Libya.
Editor: Speaking of monitoring and data, how will you ensure that the implementation of these policies is effective and meets the intended goals?
Governor Issa: We will establish a periodic review system that allows us to track the progress of the strategic implementation. Each electronic payment company will have to report on their milestones, and we will evaluate their adherence to the standards we’ve set. This accountability will help us make necessary adjustments in real-time, ensuring that we stay on track with our objectives.
Editor: It sounds like a robust system is being put into place. What do you envision as the long-term impact of these measures on Libyan society and the economy?
Governor Issa: We anticipate that a modernized electronic payment system will lead to greater financial inclusion in Libya. By making transactions easier and more accessible, we hope to encourage more individuals and businesses to participate in the formal economy. This not only improves economic stability but also enhances consumer trust and encourages foreign investment in our payment infrastructure.
Editor: It’s clear that there are transformative changes on the horizon. Before we conclude, is there one final message you would like to share with our readers about the future of electronic payments in Libya?
Governor Issa: Yes, I want to emphasize that the future of electronic payments in Libya is bright and full of potential. We are committed to overcoming current challenges and driving innovation in the sector. We also urge stakeholders to collaborate with us as we navigate this journey toward a more modern, efficient, and integrated financial system. Together, we can shape a better economic future for our nation.
Editor: Thank you very much, Governor Issa. It’s been a pleasure speaking with you today, and we look forward to seeing the progress with electronic payments in Libya.
Governor Issa: Thank you for having me.