The parallel Central Bank of Libya (CBL) of the unrecognised Eastern Libyan government says it has started to open letters of credit (L/Cs) in US dollars and other foreign currencies.

Parallel CBL governor, Ali Al-Hibri, said the bank had been able to do this because Eastern Libyan forces had earlier this month reestablished control over oil terminals and port facilities in the oil producing region.

Oil exports

The authorities in Eastern Libya say they have handed over the oil facilities to the National Oil Corporation so that oil exports can be resumed.

To support these activities, the parallel CBL will be able to open L/Cs in US dollars, euros and British pounds according to Al-Hibri.

Recognition

The parallel CBL governor told local media that his staff had the capabilities to deliver these services, but the bank is not universally recognised.

Earlier this year the International Monetary Fund said it recognised Al-Hibri as central bank governor.

But when the parallel CBL showed new banknotes at a meeting in Tunis in June, the US Embassy in Libya declared the banknotes to be counterfeit.

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