The Central Bank of Libya (CBL) is looking for ways to restart the letter of credit (L/C) flows that are essential to the country's economy.

The central bank is working alongside committees and ad hoc groups of citizens who are trying to establish a functioning government for the so-called liberated area of Libya, of which Benghazi is the unofficial capital.

Benghazi base

The CBL is working from its office in Benghazi, which is reportedly heavily guarded by armed men in various uniforms.

Libya is reliant on L/Cs, not only for the oil exports on which its economy almost entirely relies, but also for imports since the country is a net importer of food and medicine and manufactures few consumer goods.

L/C urgency

Central bank officials are therefore holding talks with other banks this week to work out how L/Cs could be made available again.

According to one central banker, Libya does have foreign exchange reserves, but these are only likely to last around three months.

In this context, it is essential that oil exports start to flow out and foreign currency starts to flow into Libya soon.

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