Regulatory Alerts2023-07-12
Central Bank of Libya Circular 2/2017 on Regulations for Using Foreign Currency to Open Letters of Credit
The Central Bank of Libya issued Circular 2/2017 to amend and supplement regulations governing the use of foreign currency for opening Letters of Credit (LCs). The circular mandates that banks strictly monitor LC values against entity capital and annual budget allocations, enforce comprehensive documentation including inspection, health, and origin certificates, and standardize internal approval workflows to ensure compliance with international standards. These measures aim to stabilize domestic prices, prevent import fraud, and streamline customs clearance while allowing for periodic policy reviews based on the national import budget.
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