Rival Libyan central banks print competing currencies
The battle between the UN-backed Libyan Government of National Accord (GNA) with PM Faiez Serraj and the rival Tobruk-based House of Representatives (HoR) under PM Abdullah Al-Thinni has resulted in several parallel institutions.
|There are two National Oil Companies and two Central Banks. One Central Bank is headquartered in Bayda and the other in Tripoli. The UN and most of the international community recognize only the Tripoli-based bank. There have been meetings between officials of the two national oil companies that has resulted in an agreement to begin oil exports after they had ceased. Although officials of the two banks met in Tunis in an attempt to forge some sort of unification, they appear to be still going their own way with each issuing its own banknotes. Senior diplomats worry that two rival banknotes circulating may undermine the position of the new UN-brokered GNA in Tripoli and cause economic chaos.|
The United States has been formally advised by the Libyan Presidency Council (PC) in a letter dated May 23 that Mr. Ali El Hebri, claiming to act as the Governor of the Central Bank of Libya, concluded an agreement with an international firm to print and deliver a large quantity of Libyan dinar banknotes. 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 US statement also warned about attempts to break into secure CBL facilities, meaning the safe with the gold and silver in Bayda. The US the statement claims will work with the GNA to ensure that Libya's wealth is not diverted for any fraudulent of corrupt purposes.