Libya’s Central Bank to print 30 billion dinars to ease cash crisis

Libya’s Central Bank (CBL) announced plans Thursday to print 30 billion dinars ($6.25 billion) to address the long-standing liquidity shortage in commercial banks, Reuters reports. The CBL has agreed a contract with British banknote printing firm De La Rue. The crisis, stemming from years of economic instability since Muammar Gaddafi’s fall in 2011, has forced citizens to endure long queues for cash.

The bank’s governor recently met De La Rue executives to finalize shipment schedules. CBL also plans to withdraw old banknotes gradually, though no further details were disclosed.

Despite significant oil revenue, Libya’s economy struggles due to heavy reliance on state payrolls, which consumed 48.6 billion dinars from January to October 2023. Oil income for the same period was 67.8 billion dinars.

Political divisions since 2014 have split Libya between rival administrations in the east and west of the country, complicating control of key economic institutions and worsening financial challenges. The dinar’s exchange rate is currently 4.8 to the US dollar.