Central Bank of Libya
|Central bank of||Libya|
LYD (ISO 4217)
|Preceded by||Libyan Currency Committee|
The Central Bank of Libya (CBL) is the monetary authority in Libya and enjoys the status of autonomous corporate body. The law establishing the CBL stipulates that the objectives of the central bank shall be to maintain monetary stability in Libya, and to promote the sustained growth of the economy in accordance with the general economic policy of the state.
The headquarters of the Central Bank is in Tripoli. However, to make the CBL services more accessible to commercial banks branches and public departments located far from the headquarters, the CBL has three branches located in Benghazi, Sabha and Sirte.
In March 2011, the governor of CBL, Farhat Bengdara, resigned and defected to the rebelling side of the Libyan civil war, having first arranged for the bulk of external Libyan assets to be frozen and unavailable to the Gaddafi regime. As of September 2011, the bank's governor is Gasem Azzoz.
The CBL started its operations on 1 April 1956 to replace the Libyan Currency committee which was established by the United Nations and other supervising countries in 1951 to ensure the well being of the Weak and poor Libyan economy. The primary aims of the Libyan Currency committee were to assist Libya in creating a unified currency in all four provinces.
The governing structures of the Bank are:
- The Governor.
- The Deputy Governor.
- The Governing Council.
Management of the general affairs of the Bank within the policies of the country is entrusted to a board of directors consisting of the governor as chairman, deputy governor as vice-chairman, and six other members, who usually represent other financial and economic interests.
The tasks of the governor include:
- Direct the Bank and preside over the governing council and executive commission.
- Take primary responsibility for the Bank fulfilling its responsibilities and for doing so in a lawful manner.
- The governor has ultimate authority over bank contracts and other legal documents
- The Bank's representation before tribunals of justice.
- The representation of the Bank in all its relations with other parties.
The functions of the CBL have grown since its establishment, and now include the following :
- Issuing and regulating banknotes and coins in Libya.
- Maintaining and stabilizing the Libyan currency Internally and Locally.
- Maintaining and managing the official reserves of gold and foreign exchange.
- Regulating the quantity, quality and cost of credit to meet the requirements of economic growth and monetary stability.
- Taking appropriate measures to deal with foreign or local economic and financial problems;
- Acting as a banker to the Commercial banks;
- Supervising Commercial banks to ensure the soundness of their Financial position and protection of the rights of depositors and shareholders.
- Acting as a banker and fiscal agent to the state and public entities.
- Advising the state on the formulation and implementation of financial and economic policy.
- Supervising foreign exchange.
- Carrying out any other functions or transactions normally performed by central banks, as well as any tasks charged to it under the Law of banking and currency and credit or any international convention to which the state is a party ;
- Managing and issuing all state loans
- FT interview dated 17 May 2011 here
- Birsel, Robert (1 September 2011). "Dinars from heaven as Britain flies banknotes to Libya". Reuters UK. Reuters. Retrieved 18 September 2011.