Central Bank of Libya Deploys $2 Billion in Forex and Liquidity Measures to Stabilise Dinar
The Central Bank of Libya (CBL) has initiated a significant intervention to bolster the Libyan Dinar’s exchange rate and enhance foreign currency availability. Governor Naji Essa convened a high-level meeting on Sunday, July 26, 2026, with departmental directors to review monetary and financial conditions and implement measures aimed at achieving greater monetary stability and improving banking service efficiency.
The discussions centred on the fluctuating exchange rate of the Libyan Dinar in the parallel market and the urgent need to curb escalating demand for foreign currency. In response, the CBL has adopted a package of measures designed to support exchange rate stability. A key decision involves the injection of one billion US dollars within the coming week specifically to finance documentary credits. This initiative is crucial for businesses reliant on imports and international trade, aiming to streamline the processing of credit applications and meet prevailing market demands.
Further bolstering foreign currency access, an additional one billion US dollars has been earmarked for personal use and reservations through the established system. To facilitate this, banking hours for cash dollar sales will be extended, providing greater accessibility for individuals and businesses. This dual approach to foreign currency provision underscores the CBL’s commitment to addressing both commercial and personal needs.
Beyond foreign exchange, the CBL is also tackling domestic liquidity. The first phase of the August plan has commenced, targeting the injection of 5 billion Libyan Dinars into commercial banks. This substantial liquidity injection is intended to meet the cash requirements of citizens and ensure the smooth functioning of the domestic economy.
The meeting also addressed the critical area of electronic payments. The CBL emphasised the importance of resolving any impediments faced by electronic payment companies and banks. The objective is to guarantee the uninterrupted operation and efficiency of payment systems, thereby encouraging wider adoption and use of digital financial services. These comprehensive measures signal a determined effort by the Central Bank of Libya to stabilise its economy through strategic financial interventions.
