The central bank of Libya will issue 30 billion dinars to alleviate the lack of liquidity

The Central Bank of Libya (CBL) announced Thursday that it had hired British banknote producer De La Rue to manufacture 30 billion dinars ($6.250 billion) to “solve the liquidity shortage problem” at the nation’s commercial banks.

Last Sunday, the central bank announced that, in line with a strategy set by the board of directors, the issue of the liquidity shortfall would be “gradually solved” starting in January.

Since Muammar Gaddafi’s administration was overthrown in 2011, Libya has struggled with a lack of liquidity despite its oil wealth, with individuals having to wait outside banks to receive cash and salaries.

State payrolls account for the largest portion of spending in Libya, which is mostly dependent on oil money. According to central bank data, state payrolls totaled 48.6 billion dinars from January to October, out of 67.8 billion dinars in oil earnings during that time.

The Libyan dinar is worth 4.8 to one US dollar.

To discuss putting the contract into effect, CBL’s governor Naji Issa met with regional manager Michael Wilson and CEO Clive Vacher of De La Rue on Wednesday, the bank said in a statement.

“The meeting also discussed the schedule of dates for receiving the various shipments of currency,” the bank reported.

CBL stated that, in accordance with a schedule, it intended to withdraw obsolete banknotes, although it withheld additional information.

Key economic institutions have been taken over by rival factions since 2014, when Libya was divided between warring western and eastern administrations.