Regulatory Alerts2023-07-12
Central Bank of Libya Circular No. 2016/4 on Foreign Currency Regulations for Opening Letters of Credit
The Central Bank of Libya issued Circular No. 2016/4 to regulate foreign currency usage for opening Letters of Credit and importing goods and services. The directive permits client-covered LCs under the agency format while temporarily suspending approvals for non-fully covered import hedging financing until new guidelines are issued. Bank branches must implement these rules promptly and will undergo periodic inspections, with penalties enforced for non-compliance under Law No. 1 of 2005.
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