Circular 14/2024: Implementation of Parliamentary Decision No. 68/2024 on Exchange Rate Fee

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Central Bank of Libya P.O. Box 1103 Telex Address: MisrLibya - Tripoli - Libya

Ref: A.R.M.N. (731)

Circular A.R.M.N. No. (14 / 2024) Date: 3 Rabi' al-Thani 1446 AH Corresponding to: 06 October 2024

To: General Managers of Banks Greetings,

Based on the provisions of Law No. (1) of 2005 concerning Banks and its amendments, and within the framework of the supervisory and regulatory role exercised by the Central Bank of Libya over banks in accordance with the provisions of the aforementioned law.

And with reference to Circular A.R.M.N. No. (05) issued on 2024/03/19, which forwarded Decision No. 15 of 2024 by the Speaker of the Libyan House of Representatives, issued on 2024/03/14, imposing a tax on the official exchange rate.

We inform you that the Central Bank of Libya has received a letter from the Director of the Presidential Affairs Office / Acting on behalf of the House of Representatives, with reference number M.Sh.R. 1667-, dated 2024/10/06, which forwarded a photocopy of Decision No. 68 of 2024 by the Speaker of the Libyan House of Representatives, issued on 2024/10/06, concerning the modification of the value of the fee imposed on the official exchange rate.

And as we forward to you Decision No. 68 of 2024 by the Speaker of the Libyan House of Representatives, mentioned above, you are requested to take the necessary measures to implement its subject matter, resume the operation of the personal goods system, and facilitate the procedures for opening documentary credits for all purposes and for all goods and services, effective from the date of issuance of this circular.

Peace be upon you,

(Signature) Abdul Majid Muhammad Al-Maqouri Director of Banking and Currency Supervision Department

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Copies to /

• To the Governor
• To the Deputy Governor
• To the Director of the Presidential Affairs Office / Acting on behalf of the House of Representatives
• To the Director of the Banking Operations Department - Central Bank of Libya
• To the Director of the Accounts Department - Central Bank of Libya
• To the Director of the Legal Department - Central Bank of Libya
• To the Director of the Libyan Credit Information Center - Central Bank of Libya
• To the Director of the Libyan Financial Intelligence Unit - Central Bank of Libya
• To the Deputy Director of the Banking and Currency Supervision Department for Office Supervision and Compliance Follow-up
• To the Banking Follow-up and Compliance Monitoring Section

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State of Libya Libyan House of Representatives Office of the President

Date: 06 . 10 . 2024 AD Ref: M.Sh.R. 1667 . 2024

To the Respected Gentlemen / - Governor of the Central Bank of Libya - Deputy Governor of the Central Bank of Libya

Greetings,

Hereby, we forward to your excellencies a photocopy of Decision No. (68) of 2024 by the Speaker of the House of Representatives, issued on 3 Rabi' al-Thani 1446 corresponding to 2024/10/06 AD, concerning the modification of the value of the fee imposed on the official exchange rate, for your kind action to put the decision into implementation and take what is necessary regarding the same.

Accept our highest appreciation and respect. Peace be upon you

(Signature) Osama Muhammad Yunus Director of the Presidential Affairs Office Acting

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Copies to:

• Speaker of the House of Representatives
• First Deputy Speaker of the House of Representatives
• Second Deputy Speaker of the House of Representatives
• Secretary of the House of Representatives
• President of the Diwan of the House of Representatives
• Public Affairs File
• Othman Al-Maghribi / Presidency and Decisions Department

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State of Libya Libyan House of Representatives Decisions

Decision of the Speaker of the House of Representatives No. 68 of 2024 AD Concerning the modification of the value of the fee imposed on the official exchange rate

After reviewing:

• The Provisional Constitutional Declaration issued on 3/August/2011 AD and its amendments.
• Law No. (10) of 2014 AD concerning the election of the House of Representatives.
• Law No. (4) of 2014 AD concerning the adoption of the Internal Regulations of the House of Representatives.
• The State Financial Law and the Budget, Accounts, and Stores Regulations.
• Law No. (1) of 2005 concerning Banks and its amendments.
• Law No. (7) of 2010 AD concerning Income Tax, and its amendments.
• Law No. (10) of 2010 AD concerning Customs.
• Law No. (13) of 2010 AD concerning Commercial Activity, and the executive regulations issued pursuant to it.
• Law No. (30) of 2023 AD concerning the formation of a general reserve to pay off public debt.
• And based on the proposal submitted by the Governor of the Central Bank of Libya, Mr. Naji Muhammad Issa, and the Deputy Governor, Mar'i Muftah Al-Bar'asi, to reduce the value of the fee imposed on the exchange rate.

The following decision was issued

Article One The value of the fee imposed on the official exchange rate for foreign currencies is reduced to become 20% for all purposes, with the exchange rate being added with this percentage, with the possibility of reducing it according to the conditions of Libyan state revenues during the validity period of this decision.

Article Two The revenue realized from the tax fee shall be used to cover the expenses of developmental projects if the need arises, or shall be added to the resources allocated at the Central Bank of Libya to pay off public debt, pursuant to House of Representatives Law No. (30) of 2023 AD, while observing the exceptions granted by the Speaker of the House of Representatives.

Article Three The provisions of this decision shall be implemented from the date of its issuance, and everyone is responsible for its implementation regarding what concerns them.

(Signature) Aqila Saleh Issa Speaker of the House of Representatives