The Central Bank of Libya (CBL) is the monetary authority in Libya

Libya

Libya is an African country in the Maghreb region of North Africa bordered by the Mediterranean Sea to the north, Egypt to the east, Sudan to the southeast, Chad and Niger to the south, and Algeria and Tunisia to the west....

 and enjoys the status of autonomous corporate body. The law establishing the CBL stipulates that the objectives of the central bank

Central bank

A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...

 shall be to maintain monetary stability in Libya

Libya

Libya is an African country in the Maghreb region of North Africa bordered by the Mediterranean Sea to the north, Egypt to the east, Sudan to the southeast, Chad and Niger to the south, and Algeria and Tunisia to the west....

 , and to promote the sustained growth of the economy in accordance with the general economic policy of the state.

The headquarter of the Central Bank is in Tripoli

Tripoli

Tripoli is the capital and largest city in Libya. It is also known as Western Tripoli , to distinguish it from Tripoli, Lebanon. It is affectionately called The Mermaid of the Mediterranean , describing its turquoise waters and its whitewashed buildings. Tripoli is a Greek name that means "Three...

. However, to make the CBL services more accessible to commercial banks branches and public departments located far from the headquarter, the CBL has three branches located in Benghazi

Benghazi

Benghazi is the second largest city in Libya, the main city of the Cyrenaica region , and the former provisional capital of the National Transitional Council. The wider metropolitan area is also a district of Libya...

, Sabha and Sirte

Sirte

Sirte is a city in LibyaSirte may also refer to:* Sirte Declaration, a 1999 resolution to create the African Union* Sirte Oil Company, a Libyan oil companyIn geography:* Gulf of Sirte, alias for Gulf of Sidra on Libya's coast...

.

In March 2011, the governor of CBL, Farhat Bengdara

Farhat Bengdara

Farhat Omar Bengdara is a Libyan politician and banker who was the governor of the Central Bank of Libya until he defected to the anti-Gaddafi side in the course of the Libyan civil war...

, resigned and defected to the rebelling side of the Libyan civil war, having first arranged for the bulk of external Libyan assets to be frozen and unavailable to the Gaddafi regime. As of September 2011, the bank's governor is Gasem Azzoz.

History

The CBL started its operations on April 1, 1956 to replace the Libyan Currency committee which was established by the UN and other supervising countries in 1951 to ensure the well being of the Weak and poor Libyan economy. The primary aims of the Libyan Currency committee were to assist Libya in creating a unified currency in all four provinces.

Governing structures

The governing structures of the Bank are:

1. The Governor.
2. The Deputy Governor.
3. The Governing Council.

Management of the general affairs of the Bank within the policies of the country is entrusted to a board of directors consisting of the governor as chairman, deputy governor as vice-chairman, and six other members, who usually represent other financial and economic interests.

The tasks of the governor include:

• Direct the Bank and preside over the governing council and executive commission.
• Take primary responsibility for the Bank fulfilling its responsibilities and for doing so in a lawful manner.
• The governor has ultimate authority over bank contracts and other legal documents
• The Bank's representation before tribunals of justice.
• The representation of the Bank in all its relations with other parties.

Functions

The functions of the CBL have grown since its establishment, and now include the following :

• Issuing and regulating banknotes and coins in Libya
  Libya
  Libya is an African country in the Maghreb region of North Africa bordered by the Mediterranean Sea to the north, Egypt to the east, Sudan to the southeast, Chad and Niger to the south, and Algeria and Tunisia to the west....
  
  .

• Maintaining and stabilizing the Libyan currency
  Libyan dinar
  The dinar is the currency of Libya. Its ISO 4217 code is "LYD". The dinar is subdivided into 1000 dirham . It was introduced in 1971 and replaced the pound at par. It is issued by the Central Bank of Libya, which also supervises the banking system and regulates credit...
  
   Internally and Locally.

• Maintaining and managing the official reserves of gold and foreign exchange
  Foreign exchange market
  The foreign exchange market is a global, worldwide decentralized financial market for trading currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends...
  
  .

• Regulating the quantity, quality and cost of credit to meet the requirements of economic growth and monetary stability.

• Taking appropriate measures to deal with foreign or local economic and financial problems;

• Acting as a banker to the Commercial banks;

• Supervising Commercial banks to ensure the soundness of their Financial position and protection of the rights of depositors and shareholders.

• Acting as a banker and fiscal agent to the state and public entities.

• Advising the state on the formulation and implementation of financial and economic policy.

• Supervising foreign exchange.

• Carrying out any other functions or transactions normally performed by central banks, as well as any tasks charged to it under the Law of banking and currency and credit or any international convention to which the state is a party ;

• Managing and issuing all state loans

External links

• Bank of Libya official site