The Central Bank of Libya has issued a decision to withdraw the first and second editions of 50 dinar notes from circulation, effective April 21, 2024. The bank has set August 29, 2024, as the deadline for banks to accept the notes. The decision aims to curb the circulation of counterfeit currency, with the bank reporting that four versions of fake 50 dinar notes are in circulation.
The Central Bank has identified the differences between genuine and counterfeit notes, including the presence of a colored shape that appears when exposed to light, and the texture of the paper. The bank has also warned banks to be cautious when receiving the notes to avoid accepting counterfeit currency. The decision has been welcomed by some banks, which have begun to make arrangements for customers to exchange their old notes.
The Commercial Bank of Libya has announced that it will set up special branches to receive the old notes and credit them to customers' accounts. The bank has also urged customers to be patient and to follow the instructions of bank staff. Other banks, such as the Noor Bank, have also announced plans to facilitate the exchange of the old notes.
According to the Central Bank, the total value of 50 dinar notes in circulation is around 6.3 billion dinars. The bank has also reported that the liquidity outside the banking sector is around 43.15 billion dinars, which is significantly higher than the normal level of around 3 billion dinars.
The decision to withdraw the 50 dinar notes from circulation is part of the Central Bank's efforts to maintain the stability of the financial system and to prevent the circulation of counterfeit currency. The bank has urged customers to cooperate with banks to ensure a smooth transition.
The Central Bank has also provided guidelines for banks to follow when implementing the decision, including the need to classify the notes by edition and to deposit them into the central bank's vaults. The bank has also emphasized the importance of being vigilant when receiving the notes to avoid accepting counterfeit currency.
The withdrawal of the 50 dinar notes from circulation is expected to have a significant impact on the Libyan economy, particularly on the daily transactions of citizens. However, the Central Bank has assured that the move is necessary to maintain the integrity of the financial system and to prevent the circulation of counterfeit currency.
Key points
- The Central Bank of Libya has ordered the withdrawal of 50 dinar notes from circulation due to concerns over counterfeit currency.
- The deadline for banks to accept the old notes is August 29, 2024.
- The move aims to maintain the stability of the financial system and prevent the circulation of counterfeit currency.
