Agreement to Open Letters of Credit in Official Exchange Rate.
Pulbished on:
Tripoli, 10 March 2016(Lana) The member of the General National
Congress, Ismael Al Ayeb has said an agreement has been struck by the
National Salvation Government, the Central bank of Libya and the
Audit Office, to inject 2 billion into foreign imports in the
official exchange rate.
There was an agreement with the Central Bank of Libya to open
letters of credit in the official rate, Al Ayeb said, noting that the
Bank is the body responsible for the monetary policy in the country.
The National Salvation Government on March 2 has called on the
Central Bank of Libya, to endorse the exchange rate, which could
ensure monetary stability of the market, provide foreign currency for
trade and personal needs, and end black market.
The Government pointed out, in a letter to the CBL, to the
recommendations made by the ad hoc committee selected by virtue of
the Decision No (205) of 2015, on participation of the Ministry of
Finance and the Ministry of Economy through the custom authority in
the letter of credit procedures.
The Government said it did not object to opening letters of credit
expeditiously, to provide the local market with the needed goods and
services, without negatively impacting the livelihoods of the
citizens, and to consider spending in case of a new foreign exchange
rate that's near to the current black market rate was considered.
The Government stressed the need for the difference between the
old and the new exchange rates to be deposited to the public treasury
account, to be used as a temporary subsidy in prices hikes, provided
that the CBL works out a gradual decrease of the rate in line with
the state of the economy.
The CBL has a duty, in case it decides to keep the current
exchange rate in opening letters of credit for personal and
commercial purposes, to ensure that it is able to meet the volume of
demand in a way that does not maintain the parallel market, and to
safeguard the country's money reserves in the long run.
=Lana=