Presidency Council of Libyan unity government decides to recognize eastern released currency
In an incredible reversal of policy, the Presidency Council of the UN-backed Government of National Accord (GNA) decided to honor the rival banknotes printed in Russia for the Bayda-based Central Bank of Libya.
|The bank notes have different security features, watermarks, and serial numbers from the Tripoli-based Central Bank recognized by and cooperating with the GNA. Both the U.S. and the Presidential Council had come out with statements that characterized the eastern notes as counterfeit. A statement by the U.S. embassy said:|
The United States concurs with the Presidency Council’s view that such banknotes would be counterfeit and could undermine confidence in Libya’s currency and the CBL’s ability to manage monetary policy to enable economic recovery.
The United States is unlikely to be pleased by the PC’s change of mind. Yesterday it said it was gravely concerned and shared the PC’s earlier view that the new notes would be forgeries that would destabilise the Libyan Dinar. It insisted that the international community only recognised the Central Bank in Tripoli.The eastern notes are not likely to be accepted internationally except perhaps by a few countries. The two competing notes are likely to have wildly different values when exchanged for other currencies such as the US dollar or the Euro.