17 Hrs
Source:
عين ليبيا
Documentary Credits Become Profit Drivers
Economic expert Abdelhamid Al-Fadil confirmed that the widening gap between the official exchange rate and the black market rate—exceeding 40%—turns documentary credits into a means of generating significant profits rather than their primary function of facilitating the trade of goods. He explained that this gap alters the incentives associated with obtaining the credit, making guaranteed profits easier to achieve with less effort, raising questions about the actual goods entering through this mechanism, and pointing out the existence of "fake credits" that are not followed by actual supply operations. He also emphasized that imported goods are priced according to the black market rate, despite importers receiving foreign currency at the official rate. He noted that if the gap had remained around 5%, it would have changed the volume of credits and their attractiveness. He indicated that the problem isn't solely related to speculation and greed but also to the economic environment that encourages quick profits at the expense of real production and trade.
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