Naji Muhammad Issa,Governor of the Central Bank of libya,held sequential meetings to examining the plan of the Central bank of Libya towards resolving the problem of cash scarcity.
The governor directed the directors of the concerned departments of the Central Bank of Libya, the liquidity team, and the general managers of the banks that suffer from a lack of liquidity in their branches, “to the necessity of managing this file in line with the plan approved by the Board of Directors, which ensures the solution of this problem gradually and radically, starting in January 2025.”.
In this regard, “the bank contracted to print 30 billion dinars to pump them into the banking sector and replace them with the old currency, which will be withdrawn smoothly according to a time plan that was previously included.”
It was also agreed to raise the ceilings for immediate payment at the level of individuals and merchants to be 20 thousand dinars for one transfer to individuals, and 100 thousand dinars for one purchase, along with launching a new service for transfer between companies with a ceiling of one million dinars for one transfer.
Last updated: December 2, 2024 – 00:14
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How has cash scarcity affected daily life for Libyans and their businesses?
Interview with Dr.Layla Al-Mansouri, Economic Expert on Central Bank Initiatives in Libya
Time.news Editor: Thank you for joining us today, Dr. al-Mansouri. We’re diving into the recent announcements by Naji Muhammad Issa, the Governor of the Central Bank of Libya, regarding the initiatives to combat cash scarcity in the country. Can you shed light on the urgency of these measures?
Dr.Layla Al-Mansouri: Absolutely, and thank you for having me. The issue of cash scarcity in Libya has reached critical levels, largely due to economic instability and a lack of liquidity in the banking sector. Governor Issa’s meetings and the approved plan signify a proactive step that aims to restore public confidence in the financial system, which is essential for economic recovery.
Time.news Editor: In his plan, the Central Bank has proposed to print 30 billion dinars. What effect do you believe this action will have on the banking sector and the broader economy?
Dr. Layla Al-Mansouri: Printing 30 billion dinars is a robust move designed to inject liquidity back into the banking system. This measure aims to gradually replace the old currency with new banknotes, ensuring a smoother transition. The liquidity boost will help banks meet depositor demands and facilitate transactions, ultimately stimulating economic activity.Though, it’s crucial to manage this process carefully to avoid inflationary pressures.
Time.news Editor: The plan outlines a gradual approach starting from January 2025. Why is this phased implementation important?
Dr.Layla al-Mansouri: Gradual implementation allows for better management of the process, reducing the risk of shock to the economy. By starting in January 2025, the Central Bank can monitor the impact of each phase and adjust strategies as needed. This thoughtful approach will also enable the public and businesses to adapt to changes,enhancing overall stability.
Time.news Editor: The increased ceilings for cash transfers, now up to 100,000 dinars for purchases and 20,000 dinars for personal transfers, along with a new service for company transfers of up to one million dinars, seems notable. How will this impact everyday Libyans and businesses?
Dr. Layla Al-Mansouri: Raising these limits allows for more significant transactions without the need for frequent withdrawals or deposits. For everyday citizens, this means greater adaptability in managing their finances. For businesses, it facilitates smoother operations, allowing for larger transactions that can enhance business scalability. Such enhancements are critical as Libya aims to bolster its private sector.
Time.news Editor: What do you recommend for Libyans who may still be apprehensive about the banking changes?
Dr. Layla Al-Mansouri: Firstly, I would encourage Libyans to stay informed about the Central Bank’s ongoing efforts and any updates that may arise in the coming months. It’s also essential to engage with local banks to understand how these changes can benefit them personally or professionally. Trust in the banking system is crucial, and participating in these economic reforms will help in rebuilding that trust over time.
Time.news Editor: how do you see the overall economic outlook for Libya in light of these recent banking decisions?
Dr. Layla Al-Mansouri: While challenges remain, I’m cautiously optimistic.If the Central Bank’s plans are executed effectively, we could see a significant step towards liquidity restoration, enhanced financial stability, and ultimately a stronger economy. The upcoming months will be pivotal,and I believe that the right combination of policy and public confidence will lead us toward recovery.
Time.news editor: Thank you, Dr. Al-Mansouri, for yoru insights. It’s clear that these measures could fundamentally reshape Libya’s financial landscape as we move forward.
Dr.Layla Al-Mansouri: Thank you for having me. It’s essential that we continue to discuss and analyze these developments for the benefit of all libyans.