Libya Eyes Network on Money in Banks
Libya has experienced rapid growth in the use of electronic payment methods, despite ongoing challenges related to cash liquidity and banking intermediation. Experts believe that digitalization helps improve payment systems and accelerates settlement processes, but it does not fundamentally resolve the issues of excess liquidity or weak creditworthiness. They have explained that the money supply in Libya reached approximately 217 billion dinars in March 2026, with around 70 billion dinars in cash outside banks. This reflects that the problem is not only the accumulation of cash outside the banking system, but also that the large liquidity does not translate into productive financing. Furthermore, they confirmed that the banking system suffers from surplus liquidity while credit remains limited. Solutions require building a robust technological infrastructure, including alternative data centers, security and backup systems, and the development of an integrated digital platform that includes instant transfers, electronic wallets, national data linking, and ensuring high operational continuity. They also highlighted the need to gradually reduce electronic payment fees to make them cheaper than cash transactions, focusing on enabling small merchants to easily adopt digital technologies at low costs. Additionally, there is a call to develop a comprehensive digital financial system that connects all banks and clarifies responsibilities for money transfers. The ongoing challenge remains in converting cash liquidity into productive financing and finding a balance between digital growth and real liquidity in the Libyan economy.
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