The Central Bank of Libya announced that it will allow one person to transfer $8,000 in two installments during the year 2024, as part of the new controls on the sale of foreign exchange.
In its statement regarding foreign exchange controls, the Central Bank stipulated that the person manage a bank account with the bank through which the sale is made and that the account cover the value of the currency sold.
The Central Bank also specified the uses of foreign exchange by issuing and charging “Visa and MasterCard” cards and making direct and quick external transfers through “Money Gram” and “Western Union.”
The Central Bank also specified the uses by opening a foreign exchange account for citizens to deposit the purchased currency and enable them to use it or transfer it to another account, whether as individuals or legal entities.
The Central Bank allowed individuals and legal entities to purchase the currency in citizens’ foreign exchange accounts and accumulate it without a specific ceiling within the banking sector, provided that it is used for the purposes of “issuing and charging a card, direct transfer, quick transfers, and documentary credit,” provided that the transfer does not exceed the amount of one million dollars annually.
The commission charged by the bank through quick transfers is limited according to the agreement with the transfer companies, and no citizen bears any additional expenses or commissions.
Foreign exchange controls for opening documentary credits
The Central Bank granted banks the authority to decide on requests to open credits for all goods and services that are legally permitted to be imported, provided that they have a valid CBL banking code, and ensure that the data related to the entity requesting the opening of credit is correct and that there are no reasons preventing them from continuing to deal with it before starting to open the credit.
The Central Bank instructed banks not to notify the credit except after purchasing the foreign currency to cover the documentary credit in accordance with the allocated system, provided that the maximum value of one industrial credit is 10 million US dollars, and the commercial and service credit is 5 million US dollars.
The Central Bank indicated that if a single credit exceeds the specified value, it must be presented to the Banking and Monetary Control Department to obtain documentary approval.
The bank also stipulated that the initial invoice be approved and issued by the exporting or manufacturing company or one of its authorized agents in the records of the exporting country and include all data related to the type, description, weight, quantity and price of the supplied good or service and the country of origin.
The Central Bank also gave commercial banks the authority to open documentary credits, requiring that the value of the documentary credit be fully covered by the balance available in the account when requesting to open the credit, and prohibiting granting financing of all kinds for the purpose of covering the documentary credits when they are opened as of its date.
The Central Bank recommended not accepting any “bill of lading” submitted for credit whose date of issuance and sailing is before the date of approval, with the exception of credits for bulk goods, which are accepted for approval 15 days before notification of the credit.
The Central Bank asked the parties requesting to open the credit to provide evidence that their sales were accepted through the electronic payment methods of commercial banks and electronic payment companies licensed by it, the most important of which are points of sale, with the commitment of suppliers to submit customs declarations indicating the entry of goods supplied through the official ports in the country.
The Central Bank also required obtaining a prior import permit from the Food and Drug Control Center to import medicines, equipment, medical supplies, and laboratory equipment, provided that it is for the benefit of the manufacturer or regional agents, and submitting an insurance document on the goods supplied to the bank from the letter of credit issued by one of the insurance companies.
It is scheduled to submit an inspection and inspection certificate issued by one of the inspection companies that has the bank code and that it has obtained the international standard requirements and standard specifications in quality management systems and approved by the Libyan Accreditation Center, and also evidence of payment of the tax value and security dues.
The Central Bank noted that requests to open credits should not conflict with the decisions issued by the competent authorities regarding the identification of goods prohibited from being imported or exported.
Electronic card controls
Regarding electronic cards, the bank gave permission to banks to decide on the implementation of requests from companies and small merchants for “craft licenses” to issue “Visa, MasterCard” cards for the purpose of financing the import of supplies, equipment, and services for personal purposes that are legally permitted to be imported.
The bank set a value of $500,000 per year and used the card balance for purchases and payments through points of sale for various industrial and service purposes by following up on the card account statement.
The bank also gave permission to banks to issue “Visa and Master” electronic cards for industrial purposes for companies and small merchants, which are not usable for local use and are charged at a rate of 1005 in Libyan dinars, deducted from the amounts deposited in the customer’s account.
The bank required the applicant to issue the card to obtain a license, to be registered in the suppliers’ registry at the Ministry of Economy, to have a valid CBL banking code, and to submit an acknowledgment of its approval for the regulatory authorities to examine the card’s movement and purchase operations.
Source: Central Bank of Libya