Regulatory Alerts2022-06-06
Central Bank of Libya Banking Law No. 1 of 2005 (Amended by Law No. 46 of 2012)
The Legislative Authority of Libya enacted Law No. 1 of 2005, amended by Law No. 46 of 2012, to establish the Central Bank as an autonomous legal entity mandated to issue the Libyan dinar and execute national monetary and credit policies. The legislation establishes a Board of Directors led by the Governor to supervise commercial banks, manage foreign reserves, control monetary liquidity, and regulate exchange rate mechanisms. It further prescribes comprehensive governance rules, including fixed appointment terms, strict financial reporting and auditing procedures, tax exemptions, and mandatory asset backing ratios for currency issuance to safeguard economic stability.
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