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Libyan liquidity crisis eases after exchange rate shift

Libyan liquidity crisis eases after exchange rate shift

LIBYA’S currency adjustment last month has helped ease a liquidity crisis across the country but the continued scarcity of cash dollars means the black market still thrives. Libya has been split since 2014 between warring western and eastern administrations with rival factions seizing control of key economic institutions. As the eastern banking system was cut off from the Central Bank of Libya (CBL) in Tripoli, different black market exchange rates emerged across front lines, both very different to the official rate, and making dollars unaffordable to most Libyans. As part of an economic track of a U.N.-led peace process that…
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Libyans start using new exchange rate

Libyans start using new exchange rate

THE Central Bank of Libya has introduced a new unified exchange rate agreed last month after years of division between rival branches based on opposing sides of the front line. As part of the change, the internationally recognised Government of National Accord (GNA) in Tripoli suspended a fee on foreign currency transactions that it introduced two years ago to bring the official rate closer to the black market rate. The Central Bank of Libya board agreed the new rate of 4.8 dinars to the United States dollar last month in its first full meeting for five years after splitting as…
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Libya’s divided central bank board holds rare meeting

Libya’s divided central bank board holds rare meeting

THE board of the Central Bank of Libya, whose western and eastern branches have for years been split between the country's warring rivals, said it held a first meeting in years on Monday. Unifying key institutions, including the CBL, and creating a single exchange rate across Libya have been key goals of a U.N.-led process aimed at resolving some of the economic problems obstructing a political solution to the conflict. CBL said in a statement that it had held a preliminary meeting to discuss the reactivation of the board's work including ensuring stability of prices, supporting the integrity of the…
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