Libya and China agree to direct banking transactions to boost trade
via Libya Herald2 min read
The Central Bank of Libya and the People's Bank of China have reached an agreement to link Libyan commercial banks to the Chinese Payments and Settlement System CIPS. This initiative, decided during the IMF Spring Meetings 2026 in Washington DC, aims to simplify financial transfers and enhance trade between the two nations. Naji Issa, Governor of the Central Bank of Libya, and Pan Gongsheng, Governor of the People's Bank of China, discussed increasing trade volume and establishing a strategic partnership. The agreement will enable direct transfers to China and the opening of letters of credit through Chinese banks, which is expected to benefit small traders and reduce informal market dealings. This move is also intended to improve compliance with anti-money laundering and counter-terrorism financing standards, thereby enhancing the reputation of the Libyan banking sector. An official Libyan banking delegation, led by the Governor, will visit China to foster bilateral cooperation and learn from China's experience in electronic payments and direct financial transfers. CIPS, launched in 2015, offers a secure alternative to SWIFT for cross-border transactions in Chinese Yuan, promoting RMB internationalization and reducing reliance on the US dollar.
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