Libyan Business Council warns of food shortages and increased prices due to CBL’s inflexible Letters of Credit policy | – Libya Herald
By Sami Zaptia.
(Photo: LBC)
London, 16 April 2020:
The Libya Business Council (LBC), the only legally recognized Libya-wide business council representing businesses, warned today of the possibility of food shortages and price increases, especially in foodstuffs, due to the inflexible policies introduced by the Tripoli Central Bank of Libya (CBL) on the opening of Letters of Credit.
The LBC said that this was especially the case in view of the current conditions the country is going through, in reference to war on Tripoli, the oil blockade and the outbreak of the Coronavirus and their ramification on prices, supplies and trade.
The LBC said that this was especially the case in view of the current conditions the country is going through, in reference to war on Tripoli, the oil blockade and the outbreak of the Coronavirus and their ramification on prices, supplies and trade.
LBC chairman Abdalla Fellah, warned of the upward increases in prices in the local market and his fear of the scarcity of goods, especially food stuffs, due to the inability to import and the usual flow of goods as a result of the prohibitive requirements contained in the CBLs 8 April publication No. (2) to local banks on the conditions for opening LCs.
In a very damning swipe at the CBL, Fellah said that the CBLs new conditions for opening LCs has returned businesses to the times of directed trade, in a subtle reference to the bad old Qaddafi days where supporters and cronies of the regime received exclusive preferential treatment.
The accusation comes as the CBL today published a list of select companies it had opened LCs for. Accusations of corruption and favouritism have already been directed at it.
Fellah added that this prohibitive LC policy expressly reflects the central banks hegemony in its restrictive decisions and publications that dont take into account current difficult circumstances that the world is going through in general and Libya in particular, which will have consequences for the Libyan market and therefore on the citizen in the form of scarcity of goods and high prices.
In the same context, the LBC referred to the Libyan Banking Associations letter of 15 April to the CBL raising the same concerns about the scarcity of goods and price rises if a flexible mechanism in the implementation of documentary credits was not reached soon in order to easily provide the necessary goods to citizens at these difficult times.
Putting the call by the LBC for the CBL to be more flexible in its LC opening policy, it will be recalled that there is an ongoing battle between the Tripoli CBL and the Tripoli government as to who has ultimate control over economic and monetary policy.
The Tripoli CBL claims it is a technocratic monetary body not involved in political decisions and is the custodian of Libyas reserves of wealth accumulated in the 42-year Qaddafi era.
However, as politics and economics are two sides of the same coin, the CBL has been accused of being in total control of spending decisions.
On 8 April, Libyas internationally recognized Prime Minister, Faiez Serraj, launched a damning broadside on the CBL and its Governor Saddek El Kaber. He accused it of:
He complained that the CBL was too rigid in its decisions during times of crisis and referred to the rest of the world and their extraordinary measures during the Coronavirus outbreak let alone Libya and its virtually permanent state of crisis.
He saw no logic or wisdom in the halting of the opening of LCs at a critical time for the country time when other countries were increasing their strategic stocks of medical and food supplies. He placed the responsibility of this delay on El-Kaber, warning that even if he did recommence the issuing of LCs, it could be too late as the goods Libya needs may no longer be available during this Coronavirus crisis.
Serraj said that his government through its Economy Ministry should be the competent authority making the countrys economic decisions and not the CBL. He complained that Libyas monetary and financial policy and liquidity problems are the concern of the CBL and that it should do that job including solve the countrys bank queues. Serraj said that its interference in all other government policy was causing confusion not solving other problems and was very dangerous and needed solving.
He said that the CBL failed to come up with reform policies because its board is split and called for the reunification of the its board.
He said the CBL had become an unknown black box that no one knew how it operated. It wanted to interfere in all state institutions but did not want anyone else to interfere in it, adding that It should accept its responsibility.
The CBL should reform its institutions under its competency, make liquidity available, reduce bank queues, complete its board, set foreign currency sales surcharge instead of the government and provide a monetary policy by concentrating on its areas of competency.
In lieu of the adoption of Libyas permanent constitution and subsequent full elections, the CBL considers the successive governments since the 2011 revolution that overthrew the 42-year old Qaddafi regime, as short-term interim governments with questioned legitimacy and, in the CBLs view, limited mandate and authority. To this end it sees itself as the long-term custodian of Libyas accumulated oil wealth. It expects prudence and sustainable policies from these interim governments.
This is especially saw in the case in view of the war on Tripoli since April 2019, the oil blockade since January this year and the Coronavirus curfew since March.
Serraj speech to the nation: Attacks CBL and treasonous media, says international community concerned purely with self interest
LBC re-elects Abdalla Fellah as its head
Tripoli government announces further salary cuts to rationalize spending in light of oil production and export stoppage attributed to Hafter
- Libya's reconstruction of Derna: 'A windfall for the Haftar clan' - Le Monde - September 21st, 2024 [September 21st, 2024]
- Court convicts former ambassadors, health officials, and cultural attachs at Libyan mission in Ukraine - Libya Herald - September 21st, 2024 [September 21st, 2024]
- Libyan European Transport Forum takes place in Tunis from 19 to 20 September - Libya Herald - September 21st, 2024 [September 21st, 2024]
- Sudan Situation: Sudanese Refugees and Asylum-Seekers in Libya - As of 15 Sep 2024 - ReliefWeb - September 21st, 2024 [September 21st, 2024]
- Egypt follows deadly overturning incident of vehicle carrying Egyptians in Libya - Egypt Today - September 21st, 2024 [September 21st, 2024]
- From Russia to Libya: Israel Has Adopted the Appalling Practice of Drafting Asylum Seekers - Haaretz - September 16th, 2024 [September 16th, 2024]
- With reconstruction in mind, can Turkey-Egypt thaw offer lifeline for Libya? - Al-Monitor - September 16th, 2024 [September 16th, 2024]
- FIFA Futsal World Cup: Libya emerge victorious, Angola stumble in opening ties. - CAFOnline.com - September 16th, 2024 [September 16th, 2024]
- Libya's central bank chaos must serve as a wake-up call for the West - Euronews - September 14th, 2024 [September 14th, 2024]
- One year since flooding devastated Libya - WBUR News - September 14th, 2024 [September 14th, 2024]
- Civil society should work together to be the drivers of change and overcome the divide in Libya, says USG DiCarlo [EN/AR] - ReliefWeb - September 14th, 2024 [September 14th, 2024]
- EU EXTERNAL PARTNERS: Frontex Denies Involvement in Pushbacks and Defends 400 Million Expansion Tender Thousands Pushed Back to Niger from Algeria... - September 14th, 2024 [September 14th, 2024]
- One-Year Commemoration of the Eastern Libya Floods - UNICEF - September 14th, 2024 [September 14th, 2024]
- Internal Shadows: The Unseen Plights of Libya's IDPs - Carnegie Endowment for International Peace - September 14th, 2024 [September 14th, 2024]
- Focus - Libya: One year after deadly floods, reconstruction in full swing in Derna - FRANCE 24 English - September 12th, 2024 [September 12th, 2024]
- Libya's Derna floods: Mourning a year later the loss of mums, dads and kids - BBC.com - September 12th, 2024 [September 12th, 2024]
- Turkey interested in Libya's offer of offshore exploration, says energy minister - Reuters - September 12th, 2024 [September 12th, 2024]
- A year on, Libya flood survivors grieve for their dead - Reuters - September 12th, 2024 [September 12th, 2024]
- Libya, EIA forecasts oil production of 600.000 barrels in the remaining months of 2024 - Agenzia Nova - September 12th, 2024 [September 12th, 2024]
- UNICEF Fact sheet: One - Year commemoration of the Eastern Libya floods [EN/AR] - ReliefWeb - September 12th, 2024 [September 12th, 2024]
- Goals and summary of the Benin 2-1 Libya in the Qualifiers CAF - VAVEL.com - September 12th, 2024 [September 12th, 2024]
- Libya is a step further towards adapting to climate change: GIZ - Libya Herald - September 12th, 2024 [September 12th, 2024]
- In Libya's Derna, Haftar using reconstruction to boost popularity one year after floods - Middle East Eye - September 10th, 2024 [September 10th, 2024]
- Top U.S. General Meets With Alleged War Criminal in Libya - The Intercept - September 10th, 2024 [September 10th, 2024]
- Libya: Internal Security Agency must be held accountable for deaths in custody, enforced disappearances and arbitrary detention - Amnesty... - September 10th, 2024 [September 10th, 2024]
- UNICE Fact sheet: One - Year commemoration of the Eastern Libya floods [EN/AR] - ReliefWeb - September 10th, 2024 [September 10th, 2024]
- Eastern Libya signs MoU to construct its section of the Egypt Libya - Chad Transit Road Project - Libya Herald - September 10th, 2024 [September 10th, 2024]
- Libya factions agree to appoint central bank governor in bid to ease crisis - Reuters.com - September 10th, 2024 [September 10th, 2024]
- Never mind the BRICS, focus on Libya - Duvar English - September 10th, 2024 [September 10th, 2024]
- Libya Construction Expo 2024 will be held from 28 to 31 October at Tripoli International Fairgrounds - Libya Herald - September 10th, 2024 [September 10th, 2024]
- AmCham Libya supporting high-level Libyan delegation to WEFTEC 2024 5 to 9 October, New Orleans, Louisiana - Libya Herald - September 10th, 2024 [September 10th, 2024]
- Libya at the brink of an imminent power crisis due to shortage of fuel - The North Africa Post - September 10th, 2024 [September 10th, 2024]
- Benin vs Libya Prediction and Betting Tips | 10th September 2024 - Sportskeeda - September 10th, 2024 [September 10th, 2024]
- Egyptian food exports to Libya amounted to US$ 183 million up to July an increase of 18 percent - Libya Herald - September 10th, 2024 [September 10th, 2024]
- Turkey Blocks Libya Arms Inspection For 12th Time, Raising Concerns About Commitment To Embargo - GreekCityTimes.com - September 10th, 2024 [September 10th, 2024]
- Africa News Tonight: China-Africa summit winds down, UN tries to end dispute over Libya central bank, Malawi aims to boost road safety - VOA Africa - September 10th, 2024 [September 10th, 2024]
- Notorious human trafficker sanctioned by the UN killed in Western Libya - The Jerusalem Post - September 10th, 2024 [September 10th, 2024]
- Libya central bank governor, other bankers flee to avoid militias, FT says - Reuters - September 2nd, 2024 [September 2nd, 2024]
- Expert predicts revolution in Libya, fears crisis far worse than 2011 - The Jerusalem Post - September 2nd, 2024 [September 2nd, 2024]
- Libya: UN report urges accountability for years of human rights violations in Tarhuna - OHCHR - September 2nd, 2024 [September 2nd, 2024]
- Africa File, August 29, 2024: North African Competition in the Sahel; Libya on the Edge; Burkina Faso is Spiraling - Institute for the Study of War - September 2nd, 2024 [September 2nd, 2024]
- 'Crumbling': Libya's warring factions dig in for fight over oil profits - Middle East Eye - September 2nd, 2024 [September 2nd, 2024]
- Oil Drops in Technical Correction From Rally on Libya Disruption - Yahoo Finance - September 2nd, 2024 [September 2nd, 2024]
- Libya upheaval: Why Turkey is mum over heightened tensions in Tripoli - Al-Monitor - September 2nd, 2024 [September 2nd, 2024]
- Libya: The President of the Senate asks to shed light on the death of Bija - Agenzia Nova - September 2nd, 2024 [September 2nd, 2024]
- Libya : Ousted central bank governor flees with the keys - Africa Intelligence - September 2nd, 2024 [September 2nd, 2024]
- U.S. calls for steps to maintain the credibility of the CBL - Libya Herald - September 2nd, 2024 [September 2nd, 2024]
- U.S. crude oil rebounds nearly 2% on major supply disruption in Libya and Iraq output cut - CNBC - September 2nd, 2024 [September 2nd, 2024]
- Libya: Italian cuisine protagonist of the Mena Agro Food Expo 2024 in Benghazi - Agenzia Nova - September 2nd, 2024 [September 2nd, 2024]
- Is there an end in sight for the Libya oil crisis? - The National - September 2nd, 2024 [September 2nd, 2024]
- All of Libya Held Hostage by Gunmen Targeting the Central Bank - The Washington Institute - August 25th, 2024 [August 25th, 2024]
- Sophie Kemkhadze joins as the new Resident Representative in Libya - United Nations Development Programme - August 25th, 2024 [August 25th, 2024]
- EU official targets Trkiye over growing influence in Africa, Libya - Trkiye Today - August 25th, 2024 [August 25th, 2024]
- Libya's instability will worsen further without a unified government and elections, UN envoy says - The Associated Press - August 22nd, 2024 [August 22nd, 2024]
- Will turmoil in Libya spill over into the region? - Al Jazeera English - August 22nd, 2024 [August 22nd, 2024]
- Libya: Behind abduction and failed central bank coup in Tripoli - Al-Monitor - August 22nd, 2024 [August 22nd, 2024]
- UN officials warn of further instability in Libya without elections soon - The Jerusalem Post - August 22nd, 2024 [August 22nd, 2024]
- Production at Libya's Sharara oilfield rises to 85,000 bpd to supply refinery, sources say - Reuters - August 22nd, 2024 [August 22nd, 2024]
- Small volumes of gas flowing to Italy from Libya - MEED - August 22nd, 2024 [August 22nd, 2024]
- Libya: the Brega oil company distributes fuel to citizens affected by floods in the south - Agenzia Nova - August 22nd, 2024 [August 22nd, 2024]
- Libyan Industry Union organises workshop on Libyan Industrial Exports - Reality and Prospects - Libya Herald - August 22nd, 2024 [August 22nd, 2024]
- Conflict Is Brewing in Libya Once Again - OilPrice.com - August 22nd, 2024 [August 22nd, 2024]
- Libya's Almadar Aljadid, Vox Solutions ink SMS and voice gateway deal - Connecting Africa - August 22nd, 2024 [August 22nd, 2024]
- UN warns of rapidly deteriorating situation in Libya - Morning Star Online - August 22nd, 2024 [August 22nd, 2024]
- Arbitrary detentions and impunity widespread in Libya, warns UNs Trk - Welcome to the United Nations - July 10th, 2024 [July 10th, 2024]
- Mass Graves of Migrants in Libya: An End to a Dream for a Better Life in Europe - Asharq Al-awsat - English - July 10th, 2024 [July 10th, 2024]
- Marshal Haftar Meets with Greek Ambassador to Strengthen Bilateral Relations - Libya Update - July 10th, 2024 [July 10th, 2024]
- Morocco And The UN: Paving The Path To Peace In Libya OpEd - Eurasia Review - July 10th, 2024 [July 10th, 2024]
- Libya and Russia discuss reactivating the construction of the railway project - Libya Herald - July 10th, 2024 [July 10th, 2024]
- UN probing reported mass grave on Libya-Tunisia border - Yahoo! Voices - July 10th, 2024 [July 10th, 2024]
- NDA Partners with Turkish Firm TGG to Construct Modern Tower Complex in Benghazi - Libya Update - July 10th, 2024 [July 10th, 2024]
- Efforts to increase trade between Indonesia and Libya - Libya Herald - July 10th, 2024 [July 10th, 2024]
- EU says ready to support Libya's efforts to achieve peace and transitional justice - The Libya Observer - July 10th, 2024 [July 10th, 2024]
- AmCham Libya hosts meetings during recent visit of U.S. Embassy Commercial and Economic Officer David Morrison - Libya Herald - July 8th, 2024 [July 8th, 2024]
- Spanish doctors visit Libya in their 12th campaign 500 surgeries would have been performed since 2022 - Libya Herald - July 8th, 2024 [July 8th, 2024]
- Libyan olive oil wins gold and silver in U.S. olive oil competition - Libya Herald - July 8th, 2024 [July 8th, 2024]
- As fighting rages in Sudan, refugee aid efforts expand to two new countries - ReliefWeb - July 8th, 2024 [July 8th, 2024]
- Libya's special envoy resigned. What's next for the country? - Atlantic Council - May 27th, 2024 [May 27th, 2024]
- Comment: The IVECO-TbCo impasse was resolved by hard work and determination to continue a business relationship ... - Libya Herald - May 27th, 2024 [May 27th, 2024]
- Two Libyan olive oil brands win gold at Athens International Olive Oil Competition 2024 - Libya Herald - May 27th, 2024 [May 27th, 2024]