Central Bank of Libya
The Central Bank of Libya (CBL) started its operations on April 1, 1956. Replacing the formerly established “Libyan Currency committee”, which was established in 1951. The functions of the committee were limited to backing the issued local currency with Sterling assets, thus having no role in controlling money supply, credit, or in commercial banks supervision.
The CBL derives its functions and powers from the Bank law no. 1 2005.
The primary mission of the CBL is to achieve and maintain price stability within the context of monetary policy in the interest of balanced and sustainable economic growth in Libya. It also plays a pivotal role in ensuring financial stability.
The Board of Directors is in charge of the management of the CBL; consisting of the Governor as chairman, Deputy Governor as Vice-Chairman, and seven other members, who represent other financial and economic interests. The Governor is the chief executive officer responsible for the implementation of the CBL’s policies and the management of its affairs; he also represents the CBL in all its associations with other parties.
The CBL’s objectives:
- Issuance of Libyan banknotes and coins.
- The stability of currency in Libya.
- Management of Reserves and Control of Foreign Exchange.
- Regulating the quantity, quality and cost of credit to meet the requirements of economic growth and monetary stability.
- Taking appropriate measures to deal with foreign or local economic and financial problems.
Lender of last resort.
- Supervising Commercial banks to ensure the soundness of their financial position and protecting the rights of depositors and shareholders.
- Acting as a banker and fiscal agent to the state and public entities.
- Managing and issuing all state loans.