Libya's Digital Banking Expansion Continues Amid Cash Liquidity Debate - LibyaReview
Libyan economist Mukhtar Al-Jadid has said electronic financial transactions in Libya have reached approximately LYD 500 billion, while more than LYD 60 billion remains outside the banking system, stored in homes and private safes. Writing on social media, Al-Jadid argued that cash circulating outside banks is gradually losing its importance as electronic payment systems become […]
Libyan economist Mukhtar Al-Jadid has said electronic financial transactions in Libya have reached approximately LYD 500 billion, while more than LYD 60 billion remains outside the banking system, stored in homes and private safes. Writing on social media, Al-Jadid argued that cash circulating outside banks is gradually losing its importance as electronic payment systems become increasingly dominant across the country. He noted that the Central Bank of Libya has raised the cash withdrawal limit to LYD 3,000, while a technical team is reportedly completing procedures to contract the printing of additional banknotes. Al-Jadid also said the Central Bank and commercial banks have, since the beginning of the year, significantly reduced their reliance on cash in several banking and commercial activities. According to him, transactions such as personal asset sales and documentary credit procedures are increasingly being processed electronically, reflecting the rapid expansion of digital payment services and reducing dependence on physical cash. Commenting on the growing use of electronic transactions, the economist wrote that keeping cash at home is no longer the preferred solution, arguing that expanding digital payments has fundamentally changed the way money moves within Libya’s economy. He added that followers of his economic analyses have closely monitored his assessments of Libya’s liquidity situation throughout the year, noting that his previous commentaries have consistently focused on cash circulation and liquidity management. The comments come as Libya continues to expand the use of electronic payment platforms as part of wider banking reforms aimed at reducing dependence on banknotes, improving financial efficiency and promoting digital transactions. Official figures released by the Central Bank of Libya indicate that electronic payments have grown even faster than Al-Jadid’s estimate. According to the Bank, the total value of electronic transactions reached approximately LYD 643 billion between January and July 2026, with officials expecting the figure to exceed LYD 1 trillion by the end of the year if current growth continues. The Central Bank has also confirmed the increase in cash withdrawal limits and described the expansion of digital payment services as a key pillar of its financial modernisation strategy. Cash liquidity remains one of Libya’s most pressing financial issues. While banks continue efforts to improve cash availability for customers, monetary authorities are increasingly prioritising electronic payment systems as part of broader reforms designed to strengthen the banking sector and improve the flow of money throughout the economy.