CBL pushes interior ministry to curb unauthorised forex dealings

Libya’s central bank has urged the Ministry of Interior to intensify efforts to combat unregulated foreign currency trading, warning that the growing black market is fuelling illicit financial activity and threatening economic stability.

In an official letter, the Central Bank of Libya (CBL) said the parallel market for hard currency has expanded significantly, with increasing volumes of foreign exchange being traded outside authorised channels. The bank described this trend as a serious challenge to both the national economy and internal security.

The CBL cited Law No. 1 of 2005 on banking, which gives the bank exclusive authority to license and supervise all currency exchange activity in the country. It noted that recent decisions, including Board Resolution No. 8 of 2024, have established new regulatory frameworks for exchange companies, under which a number of firms have been formally licensed to operate.

Only entities granted official authorisation are permitted to engage in currency exchange, the bank said. It warned that any activity outside these legal frameworks contributes to the spread of money laundering and the financing of terrorism.

The CBL called on the interior ministry to take “all necessary legal measures” against individuals and organisations involved in unauthorised currency dealing, including the enforcement of penalties outlined in current legislation.

The letter included a list of licensed exchange companies and offices currently authorised to operate within Libya.