Libya’s central bank has approved the printing of 60 billion Libyan dinars, equivalent to about $11 billion, in a move aimed at easing a long-standing liquidity crisis and ensuring sufficient cash circulation across the country. The decision, confirmed in a statement on Tuesday, comes amid persistent shortages that have disrupted daily banking operations and fuelled public frustration, as reported by Reuters.
According to the central bank, 25 billion dinars have already been delivered to commercial banks, while an additional 14 billion dinars are expected to arrive before the end of the year. The remaining 21 billion dinars will be imported in 2026, though the bank did not disclose the printing facility or location handling the production. The rollout is intended to replenish physical cash reserves while maintaining financial stability.
The bank also revealed that it had withdrawn 47 billion dinars from circulation earlier this year, including 10 billion in unapproved notes, in an effort to strengthen monetary control and curb counterfeit risks. Economists say the move underscores the challenge of managing liquidity in Libya’s divided economy, where competing political administrations have complicated fiscal coordination.
While analysts caution that printing large volumes of money could fuel inflation and erode the dinar’s value, others note that the decision was necessary to address urgent cash and salary shortages. “This is a short-term fix to a deep structural problem,” said financial analyst Ahmed El-Mogherbi in Tripoli. “Without broader fiscal reforms, the liquidity crisis could resurface in a few years.”
