BENGHAZI, Libya (Reuters) -Libya’s central bank said on Tuesday it had authorised the printing of 60 billion Libyan dinars ($11 billion) to ensure cash liquidity was available “in a balanced and stable manner.”
About 25 billion dinars of the total has been received and distributed to banks, while 14 billion dinars was expected to arrive from overseas before the end of the year, the statement said.
The remaining 21 billion would be imported in 2026, it added. The statement did not say who would do the printing.
“The new denominations are scheduled to arrive in successive shipments during the coming period, according to the plan approved by the Central Bank of Libya,” the statement said.
Libya has substantial oil wealth but has suffered from liquidity shortages for years, meaning residents often have to line up outside banks to withdraw cash and collect salaries.
Last year, the bank said it had signed an agreement with British banknote printer De La Rue to print 30 billion dinars to help solve a “liquidity shortage problem” at the country’s commercial banks.
Two central bank sources told Reuters this amount was part of the 60 billion in Tuesday’s statement.
Without giving a specific timeframe, the bank also said on Tuesday that it had recently withdrawn banknotes amounting to about 47 billion dinars “in order to maintain the strength of the Libyan dinar and enhance the country’s monetary and financial stability.”
Of this amount, about 10 billion dinars was “not issued by the Central Bank and unknown to it.” But withdrawing this amount nevertheless “doubled the challenges and increased pressure on the Central Bank of Libya and the banking sector.”
Since 2014, Libya has been split between western and eastern administrations, with rivals scrambling to take and keep control of key economic institutions.
(Reporting by Ayman Warfali and Ahmed Elumami; Writing by Alex Dziadosz; Editing by Kate Mayberry)
