Libya’s central bank, US Treasury discuss dollar distribution

The Governor of the Central Bank of Libya, Naji Issa, has discussed a proposed plan to distribute US dollars in cash through Libyan banks during talks with US Assistant Secretary of the Treasury for the Middle East and Africa, Eric Meyer.

The meeting, held on Friday in the US capital and attended by both sides’ delegations, forms part of ongoing coordination between Libya and international partners on financial reform and oversight.

In a statement, the Central Bank of Libya said discussions focused on the latest economic and financial developments in the country, with particular emphasis on the agreement to unify public spending, a measure considered pivotal to improving fiscal discipline and institutional coherence.

The two officials also reviewed efforts to address corruption and curb the illicit outflow of foreign currency. Attention centred on abuses linked to letters of credit and the parallel market, which authorities have identified as major channels for currency leakage.

Mr Meyer stressed the importance of continued cooperation between the Central Bank of Libya, the US Federal Reserve, and the US Department of the Treasury. He highlighted the need to strengthen compliance frameworks, enforce regulatory standards, and take firm action against those found in breach of financial rules.

The Central Bank affirmed that sustained engagement with international institutions is key to enhancing transparency, reinforcing financial governance, and protecting the stability of Libya’s banking sector.