LONDON: The Tripoli-based authorities have passed a decree banning the import of 32 items through letters of credit (LCs) for 6 months as of May.
The Tripoli authorities through their Ministry of Economy circulated the decree to the Tripoli-based Central Bank of Libya, the Customs Authority, the Chamber of Commerce and the Business Council.
Meanwhile, the Tripoli authorities assured that the ban would not affect the basic necessities and foodstuffs as well as raw materials for local industry and consumption.
The move by the Tripoli authorities to freeze the opening of official documentary letters of credit for imports is seen as a move to stem the haemorrhaging of Libya’s fast depleting foreign currency reserves.
It will be recalled that Libya has been forced into making up its deficits over the last few years by dipping into its foreign currency reserves ironically amassed by the outgoing Qaddafi regime over a few decades.
Moreover, the foreign currency shortage has led to the black market exchange rate for the US dollar to peak at two dinars to the dollar, compared to the official rate of LD 1.30 to the dollar.
Equally, the move to freeze the opening of LCs is also seen as an attempt to control the outward flow of Libya’s hard currencies through either exaggerated or fake invoices and LCs.
