Cash crunch drives Libyans toward bank cards

Libya’s ongoing cash shortage, worsened by over a decade of war and instability, is pushing many citizens toward bank cards despite significant hurdles, AFP reports. Long lines and limited cash availability at heavily guarded banks have led to caps on withdrawals, with many Libyans reluctant to reinject money into the banking system.

While cashless payments remain uncommon, younger generations are embracing the shift, recognizing electronic transactions as essential during liquidity crises, says Abdullah al-Gatet, a banker in Misrata. Yet, limited infrastructure, such as few ATMs and inadequate payment terminals, hampers adoption.

Political divisions add complexity. Competing administrations previously issued different versions of the 50-dinar note, many of which were counterfeit, prompting their withdrawal. Recent efforts by the central bank include injecting 15 billion dinars into circulation and encouraging banks to issue cards.

Despite challenges, many shoppers find cards convenient, reducing the need to carry large sums of cash.