The Central Bank of Libya (CBL) announced that, effective today, it has begun notifying commercial banks of the approval of applications for opening documentary credits—applications that had previously received clearance through the documentary credit system.
Priority in these notifications is being given to food products, medicines, and animal feed. This approach follows coordination with the Ministry of Economy and is intended to ensure a steady supply of goods to the market, preventing any potential disruptions—especially with the approach of the holy month of Ramadan.
The CBL confirmed that it will continue to notify commercial banks of approvals for documentary credit applications for all types of goods on a regular, weekly basis, without interruption, through the end of the current year.
Prioritisation of LCs
It will be recalled that the CBL and the Ministry of Economy and Trade had agreed in the 11 November meeting that documentary letters of credit will be issued to applicants on the bases of what the Ministry perceives is a national priority.
The aim of this is to attempt to rationalise and control the amount of hard currency released by the CBL in an effort to save hard currency reserves.
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