By Libya Herald reporters.
Tripoli, 30 March 2017:
In the week that saw the dinar for the first time pass through seven to the US dollar, the Central Bank of Libya took delivery of a further LD 150 million of new banknotes.
The bills, which as usual were printed in the UK, arrived by freighter at Trioli’s Mitiga airport.
Even though some of the notes will replace existing worn or damaged bills, the extra issuance still represents an increase in the money supply and therefore underpins inflation.
The irony is that throughout the country there remains a crippling lack of liquidity in the retail banking system. Customers still have to queue for hours to get their hands on limited amounts of cash from their accounts.