On the expansion of digital payment methods and the modernisation of national payment services
How is the CBL addressing structural imbalances in foreign reserves amid oil price volatility?
NAJI ISSA BELGASEM: The CBL continues to confront structural vulnerabilities arising from the country’s reliance on oil revenue, which remains sensitive to global price movements. Recent strength in global oil prices has provided a degree of external support to Libya’s balance of payments, while also highlighting the importance of managing revenues prudently to safeguard the sustainability of foreign reserves over the medium term. The CBL has adopted a proactive policy framework aimed at protecting its reserve position and maintaining macroeconomic stability. A key part of this has been the use of exchange-rate policy and foreign-exchange management tools. At the same time, the CBL has continued to monitor foreign-exchange usage, revenues, and expenditures closely through its monetary policy framework, allowing it to respond more effectively to volatility in oil prices and production. In 2024, the bank strengthened oversight of foreign currency flows, tightened controls on letters of credit and reduced ceilings for personal foreign exchange purchases. These steps were designed to manage excess demand and ensure efficient allocation of reserves. The CBL is also strengthening the quality of reserve management, with cooperation agreements aimed at enhancing asset allocation, portfolio and risk management, legal frameworks and internal capacity. This demonstrates that the CBL is managing current pressures while building a resilient reserve-management framework for the future.
What is the purpose of the new savings certificates of deposit debuted by the CBL?
BELGASEM: The CBL has launched absolute Mudharaba Certificates of Deposit, a profit sharing savings product, giving commercial banks a safe investment instrument and helping channel funds more effectively through the formal banking sector. The CBL has presented these issuances as part of its broader effort to develop Islamic monetary policy tools, while improving banks’ asset-liability management and encouraging confidence in the Libyan dinar. The initiative supports financial inclusion by encouraging investment through transparent and regulated channels. These certificates aim to absorb liquidity into the banking system, expand the base for productive investment and reinforce the role of banks in financing development.
In what ways is the CBL promoting modernisation in Libya’s payments infrastructure and digital finance?
BELGASEM: The CBL is implementing reforms focused on expanding digital payments. Under the National Financial Inclusion Strategy 2025-29, digital services have been placed at the centre of efforts to enhance access and efficiency. At the system level, digital infrastructure has also expanded, with some 3m cheques processed through the electronic clearing system in 2025, with a total value of LD143.2bn ($22.3bn) across 718 bank branches and clearing centres. Banks have been encouraged to expand mobile banking, develop payment services and introduce QR-code payments. The CBL has also developed instant payment services, LYPay and OnePay, which have helped leapfrog the payments system, enabling P2P, P2B and B2B transactions. Progress has been substantial. The number of point-of-sale terminals rose to 150,205 in 2025, up from 76,356 in 2024, while activated bank cards reached over 5m. Card transactions at points of sale totalled some 231m, with a value of LD30.6bn ($4.8bn), alongside over 21m ATM transactions amounting to LD10.9bn ($1.7bn) in withdrawals. LYPay and OnePay transactions reached 6.8m individual users and 171,804 merchants, and transaction values rose to LD74.7bn ($11.7bn) in 2025, compared to LD1.4bn ($218m) in 2024. Electronic payment instruments recorded a sharp increase, with total transaction values reaching LD389bn ($60.7bn) in 2025, compared to LD136bn ($21.2bn) in 2024, reflecting a more formalised and traceable financial ecosystem.
Read More from OBG
