Libya's interim government has issued an ordinance tasking the Central Bank of Libya (CBL) to provide 300 million Libyan dinars (US$211 million) cover in foreign currency for essential imports.

The ordinance says the money should be made available for import letters of credit (L/Cs) for food and basic goods.

Eligible goods

"The CBL must open the door for L/Cs with the official foreign currency rates to facilitate bringing in much needed basic goods and foods at reasonable prices for citizens," the ordinance issued by Presidential Council of the Government of National Accord states.

Eligible goods for these specially designated funds include rice, sugar, flour, edible oils, tea, canned tuna, macaroni, milk and powdered milk.

Fair distribution

The ordinance also sets out a framework for local governments and retailers to ration supplies of these goods to ensure they are fairly distributed.

To ensure that prices do not spiral upwards, the ordinance also stipulates that goods imported under this scheme cannot yield more than 10 per cent profit for retailers.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.