Member of the Board of Directors of Central Bank of Libya, Fathi Yacoup, said lack of liquidity in banks is mainly due to more than 220 break-in incidents that targeted banks around Libya as well as due to the split up between east and west, which hampered money transfers and made people cash out their money fearing instability and lack of security in Libya.
In a Facebook post, Yacoup added that weak infrastructure is getting in the way of activating the digital economy system, especially that more than 23.800 billion dinars are out of the banking sector.
“Political chaos has badly impacted the banking sector and yet there is no clear vision whether accord will prevail or not among conflicting parties, which has pushed businesspersons to take their money and migrate and plunged banks into a state of imbalance in liquidity deposited and withdrawn.” He wrote.
In January alone, the CBL has distributed more than 650 million dinars to all banks across the country, Yacoup explained.
Meanwhile, most banks in Libya are suffering a huge lack of liquidity, which affected the daily lives of every citizen, across the country.