The aforementioned banknote crisis could lead to further division between western and eastern Libya, in light of each party’s attempts to place responsibility on the other party.
Al-Arab London – The controversy is still raging in Libya due to the crisis of the 50-dinar banknote that the Central Bank began withdrawing from the markets, while the Russian embassy in Libya denied reports about the presence of a Russian printing press on a farm on the outskirts of the city of Benghazi, to counterfeit Libyan 50-denomination notes. dinar.
The embassy considered these news to be lies aimed at changing the point of view and ideas of the Libyan people about the real reasons behind the sudden rise in the price of the dollar, and considered that whoever spread these rumors was seeking to stir up strife and deepen resistance among the Libyans, as it described it.
The Russian position came after attempts by some parties loyal to the outgoing National Unity Government headed by Abdul Hamid Al-Dabaiba, to link the problem of the fifty-dinar note to the Eastern Region authorities’ attempt in 2016 to print sums of money in Moscow to overcome the financial crisis it was going through as a result of the governmental and political division.
Over the past few days, Libya has witnessed great controversy, after correspondence circulated between the Central Bank of Libya and executive and legislative bodies showed its intention to withdraw the fifty dinar currency from the market, after counterfeit notes were recently detected.
The Governor of the Central Bank, Al-Siddiq Al-Kabir, attributed the reasons for initiating a study of the decision to withdraw the banknote to three reasons, which are the bank’s fear of “the high and continuing rates of counterfeiting, the wide scope of its circulation and the inability to distinguish it by citizens, and the consideration of the fifty dinar note as a hoarding currency not circulated among the general public in the country.” Daily transactions, and are used in some legally illegal activities.”
There is a fear that the 50 dinar note will cause financial problems, since it goes into the coffers of smugglers and monopolists.
The bank confirmed that the paper in these conditions “causes serious damage to the economy and affects the exchange rate of the Libyan dinar,” noting that there are three denominations of fifty dinars being circulated in the market, one denomination issued by the Central Bank in Tripoli, a second denomination issued by the Central Bank in Benghazi, and another denomination. A third, whose source is unknown, is now subject to the Public Prosecutor’s investigation procedures.
According to observers, there is a fear that the 50 dinar note will cause more financial problems, as it often goes into the coffers of smugglers and monopolists who operate outside the formal economy, due to its ease of storage.
Observers point out that the aforementioned banknote crisis could lead to further division between western and eastern Libya, in light of each party’s attempts to place responsibility on the other party.
The Undersecretary of the Ministry of Foreign Affairs and International Cooperation in the former Libyan interim government, Hassan Al-Saghir, considered that the withdrawal of the 50-dinar banknote comes to impose restrictions on the Libyan government.
He said, “The Central Governor, Al-Siddiq Al-Kabir, acknowledges that one of the issues of the fifty dinar note was issued by them in Tripoli. He is the one who issued it, and now he comes to tell the Libyans that the fifty dinar note is unnecessary, and he claims that it is a banknote for criminals and money launderers.”
Al-Saghir wondered, “If that was the case, was Al-Kabir supporting criminals and money launderers when he decided to issue it and now he decided to repent and stop committing crimes,” adding, “In my opinion, the reason is simple, and the goal of the decision is to restrict spending on projects under the supervision of the Libyan government headed by Osama Hammad,” stressing that “This category in particular is more in circulation with the Libyan government, and the goal is to weaken the fifty dinars in trading transactions,” according to his estimate.
The government reassured all its citizens that all denominations of the Libyan currency are normally negotiable, whether between individuals, banking institutions, or public entities.
The government appointed by the House of Representatives said that the refusal of some shops and commercial centers to accept the Libyan currency of 50 dinars from citizens is criminalized by law and affects the national economy.
This came after what she described as a state of “confusion and confusion” that prevailed among people regarding the circulation of the aforementioned banknote, and attributed that situation to “the letter addressed by the Governor of the Central Bank of Libya to the members of the Finance Committee of the House of Representatives, in which he refers to studying the process of withdrawing the fifty dinar bill.” In its various versions of trading.”
The government explained that “the decision to issue denominations of currency and withdraw them from circulation” is carried out in accordance with applicable legislation, and the Banking Law is within the jurisdiction of the Governor of the Central Bank and his deputy, “and must be issued with their approval” and its implementation is preceded by “a warning and a time period of no less than six months until the currency is permanently withdrawn from circulation.” And this did not happen.”
She added, “The information circulating among citizens currently has no legal or procedural basis in accordance with the legislation in force, and rejecting the legally circulated currency is a crime punishable under the Libyan Penal Code, and affects the national economy and commercial circulation among people, especially since we are on the cusp of the month of Ramadan.”
The government reassured all its citizens that all denominations of the Libyan currency are normally negotiable, whether between individuals, banking institutions, or public entities.
For its part, the Ministry of the Interior of the Libyan government stressed taking all legal measures regarding the refusal of shops and commercial centers to accept the 50-dinar Libyan currency from citizens.
The Ministry called on all agencies, departments and security directorates affiliated with the Ministry of Interior to take all necessary legal measures against the owners of shops, commercial centers and public markets who refuse to accept them.
