Central Bank injects $2bn to stabilise foreign currency market

The Central Bank of Libya has announced the injection of substantial amounts of foreign currency into the market, aimed at meeting public demand and stabilising exchange rates in the coming months.

In a statement to Libya Al-Ahrar TV, the Bank confirmed that $2 billion had been supplied during the first week of April to cover a wide range of purposes, including personal transactions. Officials said the move had already led to a noticeable increase in the availability of foreign currency and contributed to a decline in the parallel market exchange rate to around eight dinars per dollar.

The Bank added that further measures are planned, including an additional $2 billion injection to meet demand for personal use, remittances, and letters of credit. A separate allocation of $1 billion in cash is also expected to be distributed as an initial tranche, enabling citizens to purchase foreign currency directly.

In a related development, the Central Bank revealed that foreign currency transfers via instant payment systems have now commenced. It also indicated that details would soon be announced regarding restricted deposits, including the possibility of converting part of their value into foreign currency upon maturity. Subscription dates and applicable ratios are expected to be confirmed at a later stage.

According to the Bank, these measures form part of a broader strategy to reduce the gap between the official and parallel exchange rates to within an 8% margin. The initiative is intended to promote market stability while ensuring that citizens’ needs for foreign currency are adequately met.