The Central Bank of Libya is an independent financial institution wholly owned by the Libyan state and serves as the country’s monetary authority. Its mandate is defined by the law establishing the Central Bank and subsequent amendments, most recently the Banking Law No. (1) of 2005 as amended by Law No. (46) of 2012. The Bank’s objectives include maintaining monetary stability and supporting the growth of the national economy within the framework of the state’s overall policy.
Objectives and Main Duties
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Issuance and regulation of Libyan currency
The national currency unit is the Libyan dinar, which is divided into 1,000 dirhams. Since 18 March 1986, the dinar has been pegged to the Special Drawing Rights (SDR) basket at a fixed rate. According to the latest adjustment on 6 April 2025, the exchange rate stands at 0.1349 SDR per one Libyan dinar. The Central Bank publishes the exchange rates of the Libyan dinar against foreign currencies based on movements of those currencies relative to the SDR. It is the legally authorized institution responsible for issuing the national currency, both banknotes and coins, which is typically backed by gold and convertible foreign currencies. -
Management of Reserves and Control of Foreign Exchange
The Central Bank manages Libya’s reserves of gold and foreign currencies and oversees foreign exchange operations. It selects appropriate investment instruments and determines the value to be invested in each currency, taking into account developments in exchange rates and financial markets to ensure the safety and profitability of these investments. The Bank also permits commercial banks to hold foreign assets in accordance with the regulations it issues from time to time. -
Acting as a Banker of the state
The CBL is the financial agent for the state and, as such, it keeps the accounts of revenues and expenditures for general secretariats. It also disburses transfers and collects funds, as well as it administers letters of credit transactions on behalf of its clients. These banking services are also offered to public institutions. On behalf of the government, the CBL administers the State’s regional and international agreements, and it manages and executes payments and commitments between Libya and other countries. -
Regulating of Banking Activities
The CBL examines and analyses the financial positions of Commercial banks and ensures that the Reserve Ratio is maintained. The CBL, thru its monetary and Macroprudential policies, affects the operations of the banking sector, to enhance its intermediary role, and to make more compatible with the occurring situation of the economy. The CBL inspects and examines the records of commercial banks and their branches to ensure accuracy and soundness in the sector. The CBL provides the Commercial banks with check clearing services as well as the services of a centralized credit risk office. It also has the responsibility of checking the suitability of the services that offered by the commercial banks. -
The CBL’S Role in Economic Development
The role of the CBL in economic development in Libya is manifested directly in creating monetary and financial institutions capable of mobilizing and channeling savings for development projects. The CBL also contributes to strengthening the State financial position through its holdings of gold and foreign exchange. The CBL’s indirect role in the economic development of Libya is embodied in its influence over the activities of commercial banks, especially by affecting the volume, direction and cost of credit thru its Monetary and Macro-prudential policies tools. The other aspect of the CBL’s indirect role lies in the adoption of monetary policies capable of reinforcing internal and external confidence in the strength and stability of the Libyan currency and economy and, consequently, encouraging savings by citizens and promoting incentives for the utilization of these savings in productive and safe investment, as well as attracting foreign investments.
Ex Governors
Saddek Omar ElKaber
Dr. Qasim Sharh Al-Bal Azouz
Mr. Farhat Omar Bengdara
Dr. Ahmed Amnisi Abdel Hamid
Dr. Al-Taher Al-Hadi Al-Juhaimi
Dr. Abdel Hafeez Mahmoud Al-Zalitni
Mr. Muhammad Al-Zarrouk Rajab
Mr. Rajab Abdullah Al-Masalati
Mr. Qasim Muhammad Sharlala
Mr. Khalil Ahmed Al-Banani