Regulatory Alerts2023-07-12
Regulations Governing the Use of Foreign Currency for Opening Letters of Credit (Circular 8/2018)
The Central Bank of Libya issued Circular 8/2018 to regulate the use of foreign currency for opening letters of credit, establishing specific value limits of USD 3 million to 10 million depending on the activity sector and mandating that all fees be fully covered by account balances without credit facilities. The circular requires requesting entities to hold a valid CBL-key and statistical code, while banks must process applications within three business days and verify insurance, inspection, origin certificates, and tax compliance. Furthermore, suppliers must submit original customs declarations within two months, and the directive repeals three prior circulars to streamline banking operations under current anti-money laundering frameworks.