Libya's Central Bank to inject $2 billion for credits and personal use, addresses liquidity and exchange rates
via Libya Herald1 min read
The Central Bank of Libya announced plans to inject $1 billion next week to finance documentary credits and allocate another $1 billion for personal use and reservations. The bank will also extend working hours for dollar cash sales. This initiative is part of a broader effort to review local cash liquidity, with the first phase of an August plan aiming to inject 5 billion dinars into commercial banks to meet citizen needs. These decisions followed a meeting led by the Governor of the Central Bank of Libya, Naji Issa, in Tripoli, where discussions focused on monetary and financial conditions, enhancing stability, and improving banking service efficiency. The meeting also addressed the Libyan Dinar's exchange rate in the parallel market, foreign exchange, documentary credits, and the resolution of obstacles for e-payment companies and banks to ensure continuous and efficient payment systems.
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Must ReadBrega Oil Marketing Company confirmed its commitment to supplying diesel fuel to the General Electricity Company of Libya GECOL to support power generation and electrical system stability. This commitment comes as Libya faces increasing power cuts since mid-June. Brega also continues to meet the needs of factories, companies, and production facilities, despite increased demand for diesel as a backup fuel due to low natural gas supply. The company emphasized that while fuel supply is crucial, network stability depends on an integrated system including natural gas availability, generator readiness, maintenance, and transmission networks. Brega noted that some industrial facilities use diesel generators during peak hours, even when electricity is available, to save costs, which increases diesel consumption and pressures the supply system. Brega called on regulatory authorities, such as the Municipal Guard Authority, to monitor fuel consumption patterns in these facilities to ensure optimal resource use. The company also urged GECOL to consider the supply system's exceptional conditions when ordering diesel, basing estimates on actual needs and scheduling withdrawals to balance power station requirements with other vital sectors. Brega, in coordination with the National Oil Corporation and relevant authorities, will continue to seek sustainable solutions to enhance supply system stability across various sectors.
Saleh Al-Abbar, Director of the North Benghazi Power Plant, stated in a television interview that Libyan citizens consume more electricity than those in neighboring countries, attributing this to the low cost of electricity in Libya. He noted that the electricity system requires constant maintenance and upgrading. Al-Abbar explained that the power deficit is caused by excessive consumption and breakdowns during peak summer periods, amidst a summer of increasing power cuts and blackouts. The General Electricity Company of Libya has raised tariffs for commercial consumers and introduced prepaid meters to encourage rational use. However, state subsidies result in an average household electricity bill of approximately LD 100 拢10 per month, which does not incentivize reduced consumption or the adoption of solar energy.
The European Union Aviation Safety Agency EASA extended its flight ban over Libya until January 2027, citing ongoing security risks, political instability, and fragmented military control. The ban, updated under CZIB-2017-02, advises air operators to exercise extreme caution or avoid Libyan airspace. Specifically, flights below FL320 are discouraged, except for coastal airport approaches with coordination and risk assessment. Operations above FL320 require extreme caution due to high-altitude air defense system risks. Despite this, international carriers, including Qatar Airways, Emirates, EgyptAir, Turkish Airlines, and Max Air, have been flying over Libyan airspace since January 2025, with some, like Air France, receiving specific corridor permissions. The US Federal Aviation Authority FAA lifted its flight ban over Libyan airspace in March 2019 for flights above 300 meters. A recent emergency landing of an Egypt Air flight at Kufra Airport in January 2025, due to a flight attendant's illness, was successfully handled by Libyan ground services, which are available 24/7. This incident was seen as positive for Libya's efforts to lift the EU ban and regain revenue from overflight fees. Furthermore, the Libyan-owned carrier MedSky currently operates flights to EU cities, raising questions about the rationale behind the continued EU flight ban.