Libya: CBL restores stability and reconnects with international banks

Libya’s Central Bank (CBL) has stabilized operations and reestablished ties with international banks, according to Asim Al-Hajjaji, Director of Compliance. Speaking to Italy’s Nova news agency on September 15, Al-Hajjaji highlighted the bank’s focus on aligning with global regulations and improving transparency.

Key efforts include strengthening internal operations and implementing strict measures to combat money laundering and terrorism financing, which have helped rebuild trust with international financial institutions and opened new partnership opportunities.

However, challenges remain. Dismissed Governor Sadek Elkaber told reporters that the CBL is still largely isolated from the global financial system, with international banks halting transactions, making it difficult to access Libyan assets abroad. Elkaber also noted that while the bank’s newly appointed board controls internal payments, foreign banks are reluctant to engage. Nevertheless, discussions with institutions like the International Monetary Fund, the U.S. Treasury, and JP Morgan are ongoing.