Tripoli_ The Central Bank of Libya (CBL) has signed a contract to print what is worth 30 billion Libyan dinars worth of new banknotes as part of its efforts to solve the problem of cash shortages in Libya banks for many years.
In a statement issued on Sunday, the CBL said the new banknotes would be gradually replacing the old ones starting in January 2025. Observers say that this plan is aimed at withdrawing some of the huge amounts of money that are being stored outside the banking system.
Also on Sunday, the Governor of the CBL Mr. Naji Issa directed heads of various departments at the bank to implement the new plan that has been approved by the Board of Directors for solving the cash shortness in the banking system.
Issa reiterated the need to improve and develop the banks’ infrastructure in order to enhance electronic payment services. The Board of Directors also agreed to raise the limit of money transfer for individuals to 20,000 Lyd and the limit for traders up to 100,000 Lyd. This is in addition to raising limit of transfers among companies up to one million Libyan dinars per each transfer.
The CBL has ordered commercial banks to grant customers up to 60 per cent of their salaries as loans in accordance to the so-called “Good Loan” banking scheme. This move is aimed at offset the difficulties faced by citizens whose salaries are often not paid on time by the government. With one condition that these loans are allocated for electronic payment operations and not in cash.
Libyan citizens have developed distrust in the banking system since 2011. Some source estimate the amount of Libyan dinars that hidden in homes at over 50 billion.