The Central Bank of Libya has released data showing that the bank has allocated $10.11 billion for documentary credits to Libyan commercial banks from January to September 2026. This represents 52.29% of the total amount sold during this period, which was over $19.34 billion. The bank also reported that $39 million was allocated for merchant cards, a mere 2% of the total.
According to the Central Bank's data, documentary credits received the largest share of foreign currency allocations, with a value of $10.1 billion. Personal purposes came in second, with $6.5 billion, followed by remittances worth $2.68 billion. The significant allocation for documentary credits highlights the importance of this financial instrument for Libyan businesses.
The Central Bank's data also reveals that the Commercial Bank of Libya, also known as the Republic Bank, was the top recipient of foreign currency allocations among commercial banks. The bank received a total of $3.35 billion, followed by Al-Amal Bank for Commerce and Investment with $1.97 billion, and the National Commercial Bank with $1.55 billion.
The allocation of foreign currency for merchant cards was significantly lower, with a total of $38,999,000, representing only 2% of the total allocations. This low figure may indicate limited use of merchant cards in Libya or strict controls on foreign currency allocations for this purpose.
The Central Bank's data also shows that there was a shortage of foreign currency usage, with a deficit of $4.7 billion during the first nine months of 2026. The bank reported that total oil revenues and royalties during this period were $17.6 billion, while total foreign currency usage and commitments were $22.3 billion.
The Central Bank's governor has not provided a detailed explanation for the shortage, but it may be related to various factors, including fluctuations in global oil prices, the country's economic challenges, and the ongoing conflict in the country. The bank's data provides valuable insights into Libya's foreign currency market and the country's economic performance.
The Central Bank's release of this data is seen as a positive step towards transparency and accountability in the country's financial sector. The bank's efforts to provide regular updates on foreign currency allocations and usage will help stakeholders make informed decisions about the country's economic prospects.
Key points
- The Central Bank of Libya allocated $10.1 billion for documentary credits and $39 million for merchant cards from January to September 2026.
- The Commercial Bank of Libya received the largest share of foreign currency allocations among commercial banks, with a total of $3.35 billion.
- There was a shortage of foreign currency usage, with a deficit of $4.7 billion during the first nine months of 2026.
