The Central Bank of Libya (CBL) is considering withdrawing the 50 dinars banknotes from circulation, according to a mechanism that will be announced later, as the Governor, Al-Siddiq Al-Kabir, confirmed the existence of a plan allowing the banknotes to be accepted and deposited in accordance with the controls and procedures for money laundering and combating terrorism.
This announcement came in a circulated letter sent by Al-Kabir to the Prime Minister, members of the Finance Committee of the House of Representatives, the Attorney General, and the heads of the Audit Bureau and the Administrative Control Authority, in which he listed a number of reasons obliging the CBL to act on this issue.
The Governor attributed the reasons for initiating a study of the decision to withdraw the banknotes to three reasons: First, the CBL's fear of the high and continuing rates of counterfeit, the wide scope of its circulation, and the inability to distinguish it by citizens. Second: The banknotes are considered a savings preference that is not circulated among the general public in daily transactions, and is used in some illegal activities. Finally: The CBL confirmed that the banknotes in these conditions cause serious damage to the economy and affect the exchange rate of the Libyan dinar.
The CBL indicated that there were three prints of the 50 dinars banknotes being circulated in the market, one issued by the Central Bank in Tripoli, a second issued by the Central Bank in Benghazi, and a third of unknown origin that is now subject to investigation procedures by the Attorney General's Office.
