The Central Bank of Libya: Expanded meetings have taken place to discuss the arrangements needed to facilitate the procedures of opening Documentary Letters of Credit
An expanded meeting was held on the 15th of December 2016 at the Central Bank of Libya and was attended by members from the Supervisory Department of the Central Bank of Libya, Managers of commercial Banks, and the L/C vetting committee of the Central Bank of Libya in order to discuss the arrangements needed to facilitate the procedures of opening documentary letters for supplying consumer goods, medicine, manufacturing supplies, raw materials and other essential goods and services. This will ensure goods will be distributed to the local markets to fulfill food and medical needs for citizens and to achieve a balance between demand and supply to end the negative effects caused by the black market phenomenon. The procedures taken will help in handling the inflationary effects of illegal currency speculation that caused the increase in prices and unavailability of goods including other disadvantages that effect citizens’ living standards, economic balance and stability of the community.
The meeting also addressed the instructions put by the Governor of the Central Bank of Libya which are: speed in preparation to initiate the opening of documentary letters, provide quick transfers, credit cards and other services starting from the beginning of January 2017 without any delay or difficulty. Also, expanding in the use of credit cards instead of cash to help in providing solutions to the problem of liquidity besides focusing on documentary letters and points of sale (POS).
An important point also discussed during the meeting addressed handling the phenomenon of multiplicity of foreign inspection companies by the adoption of international well known and authoritative companies so that this procedure will completely stop any illegal actions concerning shipments, items, and amounts listed in the documentary letters. This will reduce smuggling, increase product validity and optimize the use of foreign currency. A great amount of cooperation and coordination will be taken with the Customs Department who is responsible for security, smuggling control and preventative measures. It was also mentioned that the economic indicators confirm that the overall economy will develop positively in 2017 which will have a positive effect on the citizens’ life.