Libya Central Bank mulls slapping taxes on selling dollars to combat money smuggling

Libya Central Bank mulls slapping taxes on selling dollars to combat money smuggling

May 21, 2018 - 21:14
Posted in:
Written By: AbdulkaderAssad

The Central Bank of Libya (CBL) is considering to slap 200% taxes on selling US dollars at the commercial banks to Libyans in coordination with the Presidential Council, a source at the CBL was reported by The New Arab.

CBL said the move aims at combating the current hike in exchange rates in Libya.

“The dollar will be at 3.5/3.6 Libyan dinars while the official rates remain at 1.33 Libyan dinars, and it comes as restrictions slapped since 2015 on selling dollar have been lifted by the CBL.” The source added.

The source explained that the money of “fees” or “taxes” of the transactions will be going to the state treasury as it is so difficult to alter the current official exchange rate nowadays given the division of the institution and since the CBL governor cannot take such a decision on his own.

1$ is sold nowadays for over 6.65 Libyan dinars at the black market. CBL allowed families to buy dollars at the official rates since 2017 with $400 in 2017 and then $500 this year for every family member.

This came after Libya’s Audit Bureau had announced the names of figures and local and international firms involved in smuggling foreign currency, accusing them of greatly damaging Libya’s economy.

The Audit Bureau sent a letter to the Central Bank of Libya (CBL), the Head of the Commission of Imports Budget, and the banks’ managers urging them to stop dealing with the bank accounts of the involved figures ad firms, which are 44 local companies and 24 foreign companies in addition to names of persons involved in the issue.

Meanwhile, Libya came 171 out of 180 on the Transparency International list of most corrupted countries around the world in 2017.