During its first meeting after an absence of ten years, the Board of Directors of the Central Bank of Libya announced a number of measures, the most prominent of which is extending the acceptance of the fifty dinar note until the end of April 2025, with the last date for its acceptance by the Central Bank being (May 8, 2025).
The Council agreed to activate the unified clearing system between the bank’s branches in Tripoli and Benghazi to enable banks to fully use their balances.
According to a statement published by the bank, the council decided to grant final approval to the exchange companies and offices that obtained initial approval, provided that their situations are settled in accordance with the Central Bank of Libya’s Board of Directors Resolution No. (27) of 2013.
90 day plan
The Board of Directors adopted a short-term strategic plan (90 days) to enhance the bank’s role in regulating monetary policy, exchange rate policy, effective supervision, and activating the Monetary Policy Committee.
The Council decided to authorize the Governor of the Central Bank of Libya and his deputy to take the necessary measures to expedite and facilitate the payment of salaries. It also agreed to transfer the national distributor to the Central Bank of Libya to provide liquidity to all bank branches.
New procedures and projects
According to the statement; The Council approved a draft of absolute Mudaraba certificates of deposit in accordance with the principles of Islamic banking, and investment accounts to encourage citizens to deposit their savings in banks.
The Board of Directors also approved the guide for establishing financial leasing companies, the regulations for financial leasing contracts, and its business model, to begin granting new licenses.
The Board of Directors also agreed to adopt the Libyan banking sector governance guide to meet international standards, in addition to continuing to take appropriate procedures and measures to support the value of the Libyan dinar at a time when the country is going through difficult economic conditions.
Source: Central Bank of Libya
Interview Between Time.news Editor and Dr. Fatima Al-Mansouri, Economist and Central Bank Expert
Time.news Editor: Welcome, Dr. Fatima Al-Mansouri. It’s great to have you with us today. The recent meeting of the Central Bank of Libya’s Board of Directors marks an important moment after a decade-long absence. How significant do you think this meeting is for Libya’s economic landscape?
Dr. Fatima Al-Mansouri: Thank you for having me. The significance of this meeting cannot be overstated. After ten years of inactivity, the resumption of the Board’s activities is a vital step toward stabilizing Libya’s economy. It signals a commitment to reforming our financial systems and improving economic governance, which are crucial for attracting both domestic and foreign investment.
Time.news Editor: One of the highlighted measures from the meeting is the extension of the acceptance of the fifty dinar note until April 2025. Why is this move important?
Dr. Fatima Al-Mansouri: Extending the acceptance period for the fifty dinar note is primarily about ensuring liquidity and stability in the market. This move allows citizens enough time to adapt, especially those who might be holding onto these notes. It also helps instill confidence in the currency, which has faced significant challenges over the years due to inflation and currency devaluation.
Time.news Editor: The board also discussed activating a unified clearing system between the bank’s branches in Tripoli and Benghazi. What implications does this have for banking operations within Libya?
Dr. Fatima Al-Mansouri: The activation of a unified clearing system is a groundbreaking development. It streamlines banking operations across key regions in Libya, enables more efficient fund transfers, and enhances the overall interbank network. This can lead to quicker transactions, improved cash flow for businesses, and a stronger financial infrastructure—critical for restoring confidence in our banking system.
Time.news Editor: Another point of interest is the approval of exchange companies and offices. How does this reflect on the Central Bank’s broader regulatory framework?
Dr. Fatima Al-Mansouri: Granting final approval to exchange companies and offices indicates a move towards regulatory clarity and operational legitimacy. It emphasizes the Central Bank’s commitment to establishing a regulated financial environment, which is essential for reducing the influence of black-market activity. These measures align with similar global practices where regulating currency exchange can stabilize the economy.
Time.news Editor: And what are your thoughts on the proposed 90-day plan? What can we realistically expect from this timeframe?
Dr. Fatima Al-Mansouri: The 90-day plan is an important initiative aimed at setting actionable goals for the Board of Directors. We can expect some immediate structural changes as well as the beginning of more extensive reforms. However, while the plan is ambitious, the success will depend on effective implementation, transparency, and the willingness of all stakeholders to collaborate. It will be critical for the Central Bank to communicate progress regularly to maintain public trust.
Time.news Editor: Looking ahead, what are the biggest challenges you foresee for the Central Bank of Libya in executing these measures?
Dr. Fatima Al-Mansouri: One challenge will be ensuring political stability, which is vital for economic reforms to take root. Additionally, the Central Bank will need to address the historical issues of corruption and inefficiency that have plagued our financial institutions. Building a capable workforce and enhancing technological infrastructure are also essential steps. If these challenges can be addressed, there is potential for substantial economic recovery in Libya.
Time.news Editor: Thank you, Dr. Al-Mansouri. Your insights provide valuable context to these recent developments at the Central Bank of Libya. We appreciate your time and expertise.
Dr. Fatima Al-Mansouri: Thank you for having me. It’s an important moment for Libya, and I’m optimistic about the path ahead.