Central Bank of Libya Prints 30 Billion Dinars to Solve Liquidity Shortage

The Central Bank of Libya commissioned Tuesday the British banknote printing company De La Rue to print 30 billion dinars, equivalent to $6.25 billion, to solve the liquidity shortage crisis in commercial banks in the country.

The Central Bank said last Sunday that the liquidity shortage problem “will be gradually resolved” starting next January, in line with a plan approved by the Board of Directors of the Central Bank of Libya, according to Reuters.

The dollar exchange rate against the Libyan dinar is currently around 4.8 dinars.

The bank’s governor, Naji Issa, met yesterday, with the company’s CEO and regional manager to discuss the implementation of the contract and the schedule for receiving shipments, according to a statement from the Libyan bank. The bank added in its statement that it intends to withdraw the old banknotes according to a timetable, but did not disclose further details.