The Central Bank of Libya has issued new directives to the general managers of commercial banks regarding adjusting the statutory reserve requirement ratio against total deposit liabilities.
According to the circular obtained by Al-Manassa, the Central Bank obliges banks to maintain a minimum cash reserve of no less than 30% of the total value of their deposit liabilities. This step comes within the framework of the plan adopted by the Central Bank to tighten the current monetary policy and exert greater control over the volume of money circulating in the country. The Central Bank has attached a copy of Banking Law No. (1) of 2005 to this circular, which includes the legal articles related to the adjustment of the mandatory reserve ratio, specifically Articles 57, 58, and 59. The Central Bank stressed the need for all banks operating in the country to fully comply with the provisions of this publication, to ensure the stability and integrity of the Libyan banking and financial system.