The Central Bank of Libya (CBL) has issued an order to withdraw two types of 50 Libyan dinars (LYD) banknotes from usage all over the country starting April 21 up until August 29, instructing all commercial banks across Libya to accept the two types of 50 dinars’ banknotes no longer after the specified date.
The CBL mulled over a month ago to withdraw the 50 LYD banknotes from circulation, as the Governor, Al-Siddiq Al-Kabir, confirmed the existence of a plan allowing the banknotes to be accepted and deposited in accordance with the controls and procedures for money laundering and combating terrorism.
The Governor has attributed the reasons for initiating a study of the decision to withdraw the banknotes to, First: the CBL’s fear of the high and continuing rates of counterfeit, the wide scope of its circulation, and the inability to distinguish the banknotes by citizens. Second: The banknotes are considered a savings’ preference and the banknotes are not circulated among the general public in daily transactions, but they are used in some illegal activities. Finally: The CBL has confirmed that the banknotes in these conditions cause serious damage to the economy and affect the exchange rate of the Libyan dinar.
The CBL indicated that there were three prints of the 50 LYD banknotes being circulated in the market, one issued by the Central Bank in Tripoli, a second issued by the Central Bank in Benghazi, and a third of an unknown origin that had been subject to investigation procedures by the Attorney General’s Office.
