The Central Bank of Libya announced the issuance of new currency notes featuring the image of Libyan revolutionary Omar Mukhtar, alongside historical landmarks. This move aims to bolster public trust and reduce counterfeiting risks.
Despite the introduction of these new denominations, the bank indicated that additional currency categories are currently being printed, with details to be announced later.
This decision follows a meeting between the bank's governor and the CEO of the British currency printing company De La Rue in December, discussing the implementation of previous contract amendments and shipment schedules. The total value of these contracts is estimated at 30 billion Libyan dinars (approximately $6.25 billion).
Libya's economy continues to struggle with a liquidity crisis, exacerbated since 2011 by political divisions between rival administrations in the east and west. Citizens face challenges accessing their salaries, often resulting in long queues outside banks.
The issuance of new currency notes is viewed as a potential restructuring of the monetary system aimed at stimulating economic activity. However, it faces significant challenges, including public distrust in financial institutions and issues related to currency smuggling and black market operations, which undermine the true value of the Libyan dinar.
With the appointment of Naji Mohamed Issa as the new governor, there are expectations for positive changes in central bank policies. This currency release serves as a practical test for Issa amidst the major economic challenges the country faces.
The bank reported financial revenues of approximately $17 billion in 2024, which could support new economic measures. However, the success of these initiatives heavily relies on political stability and comprehensive economic reforms.
While these monetary measures represent a fresh start, analysts remain skeptical about their sufficiency to resolve Libya's deep-seated crisis. They argue that cooperation between financial institutions and the government, backed by political and security stability, is essential for achieving genuine and sustainable economic recovery.