Libya Foreign Exchange 2026: Where Did $19.34bn Go?

Libyan commercial banks used $19.34 billion in foreign exchange during the first nine months of 2026, an increase of just 3.1% from the same period a year earlier. Behind that relatively modest growth was a marked change in how foreign currency moved through the banking system.

Letters of credit, an important channel for financing imports, declined by 10.3% to $10.11 billion. Personal-purpose allocations also fell, while foreign-exchange transfers increased by 654.1%, reaching $2.68 billion.

The figures come from the Central Bank of Libya's September 2026 foreign-exchange report, which examines commercial-bank activity between January 1 and September 30. Beyond the headline totals, the report identifies the banks handling transactions, the sectors seeking import financing and the countries associated with approved foreign-currency purchase requests.

For businesses operating in Libya, those details are relevant to an economy where imported goods, industrial equipment and international suppliers depend heavily on access to foreign currency. The figures also reveal how much remains unknown about the economic purposes of certain transactions, particularly the rapid expansion of transfers.

How much foreign exchange did Libyan banks use in 2026?

According to the Central Bank of Libya (CBL), commercial banks recorded exactly $19,341,501,336 in actual foreign-exchange uses between January and September 2026, compared with $18,760,468,762 during the equivalent period of 2025.

Letters of credit accounted for $10.11 billion, representing 52.3% of the total. Personal-purpose allocations reached $6.51 billion, or 33.6%, while transfers amounted to $2.68 billion, equivalent to 13.9%. Merchant-card transactions accounted for the remaining $39 million, approximately 0.2%.

The year-on-year changes were considerably larger within individual categories. Letters of credit declined from $11.27 billion in 2025 to $10.11 billion in 2026, while personal-purpose allocations fell from $7.06 billion to $6.51 billion. Transfers moved in the opposite direction, rising from approximately $356 million to $2.68 billion. Merchant-card transactions declined from $73 million to $39 million.

These categories reflect different ways of accessing foreign currency. Letters of credit are widely used in international trade because they allow banks to arrange payments to suppliers under agreed documentary conditions. Transfers provide another payment mechanism, while personal-purpose allocations operate under separate rules for individuals.

The CBL data show that total foreign-exchange use through commercial banks increased by approximately $581 million over the nine-month period. The substantial movement between payment categories deserves closer attention because it could reflect changes in banking activity that are difficult to identify from the aggregate total alone.

Why did Libya's bank transfers increase by 654%?

Foreign-exchange transfers recorded through Libyan commercial banks increased by more than $2.32 billion between January and September 2026 compared with the same period in 2025.

The scale of that increase is unusual when viewed alongside the decline in letters of credit. The two categories moved in opposite directions, although the published figures do not establish that businesses transferred payments from one channel to another.

A possible explanation lies in changes to banking procedures or the availability of different methods for making international payments. Importers and other commercial customers may use different payment arrangements depending on transaction requirements, regulatory conditions and the services offered by their banks.

There was a relevant development in June. On June 2, 2026, Libya AlAhrar reported that the CBL had resumed foreign-currency sales to commercial banks, allocating $1.5 billion for letters of credit and $1 billion for various transfers. The announcement also included $1 billion for personal-purpose allocations and measures to supply banks with physical dollars.

This confirms that transfers formed a substantial part of the CBL's foreign-currency distribution arrangements during 2026. Whether the June measures contributed to the increase recorded over the entire nine-month period is harder to determine.

The available report does not provide a sufficiently detailed explanation of transfer purposes or establish whether changes in eligibility, customer demand or transaction processing were responsible for the increase.

For Libyan businesses, the distinction is commercially important. Letters of credit generally involve documentation and conditions agreed between banks, importers and overseas suppliers. Other transfers may follow different procedures, affecting how companies arrange international payments.

Understanding the increase would require further information from the CBL about the types of payments included in the transfer category and any changes to the rules governing their use.

Which Libyan banks handled the most foreign exchange in 2026?

The CBL's report identifies substantial differences in foreign-exchange activity among Libya's commercial banks.

Jumhouria Bank recorded the largest amount during January to September 2026, with approximately $3.36 billion, representing 17.35% of total commercial-bank foreign-exchange uses. Aman Bank followed with $1.97 billion, or 10.21%, while National Commercial Bank handled approximately $1.55 billion, equivalent to 8.02%.

Wahda Bank recorded $1.51 billion, representing 7.81%, and North Africa Bank accounted for $1.29 billion, or 6.64%. Together, these five institutions handled approximately half of the foreign currency used through commercial banks during the reporting period.

The distribution becomes more concentrated when transfers are examined separately.

National Union Bank recorded approximately $1.109 billion in transfers, while Wahda Bank handled another $1.039 billion. Based on the CBL's bank-by-category figures, Libya Investment Monitor calculates that the two banks together accounted for approximately 80.1% of all commercial-bank foreign-exchange transfers during the first nine months of 2026.

This concentration raises questions about the types of transactions handled by individual banks and whether differences in customer activity or banking services contributed to the distribution.

The figures identify the banks through which foreign-exchange activity was recorded. They do not establish the ultimate recipients of transfers or the goods, services and other obligations associated with the payments. A large share of recorded transactions is not, by itself, evidence of irregularity.

Further information on the composition of transfers would help explain why such a substantial proportion passed through two institutions during a period of rapid growth in the category.

Which Libyan industries received foreign-exchange financing approvals in 2026?

The CBL also published a breakdown of accepted foreign-currency purchase requests, providing information about the economic activities associated with demand for dollars.

These figures require a separate interpretation from the $19.34 billion in actual banking foreign-exchange uses. An accepted financing request does not necessarily mean that payment was completed or that the goods subsequently arrived in Libya.

Between January and September 2026, the CBL recorded 13,388 accepted requests involving 3,078 entities, excluding personal-purpose allocations. The applicants included 2,971 private-sector companies or factories, 49 public-sector entities and 58 classified under miscellaneous categories.

Letters of credit represented 11,715 accepted requests, accounting for 87.5% of the total number.

Food products formed the largest category among accepted private-sector requests by value, at approximately $2.60 billion, representing 23.7% of the relevant total. Production inputs and operating materials followed with $1.91 billion, or 17.4%, while construction materials accounted for $1.10 billion, equivalent to 10%.

Other major categories included medicines at approximately $781 million, machinery and equipment at $634 million, and transport equipment, tyres and spare parts at $622 million.

The prominence of food products reflects the scale of financing requested for a sector closely connected to international supply chains. Importers and distributors depend on banking services to arrange payments for products purchased abroad, making foreign-currency access an important part of commercial operations.

The production-input figures are particularly relevant to Libya's industrial development. Factories that manufacture products locally often require imported raw materials, components and machinery to maintain operations or expand capacity.

Construction materials and industrial equipment are also important to Libya's investment and reconstruction activity. Companies developing factories, housing, logistics facilities or infrastructure projects may depend on foreign suppliers for equipment and materials unavailable locally.

Yet the economic contribution of these transactions cannot be determined from the financing requests alone. Imported machinery may support new domestic production, while operating materials may help existing factories maintain output. Establishing those outcomes would require information about completed imports and the performance of the businesses concerned.

That distinction is relevant to Libya's economic diversification, where increasing industrial capacity depends partly on reliable access to foreign equipment, components and financing.

The CBL's sector breakdown identifies where financing was sought and approved. A closer connection between banking, customs and industrial production data would provide a better picture of how those transactions contribute to economic activity inside Libya.

Where did Libya's import-financing requests originate, and where were payments directed?

The September report identifies the principal countries associated with accepted private-sector requests for foreign-currency financing, using separate classifications for the origin of goods and services and the countries recorded as beneficiaries.

Türkiye ranked first among countries of origin, accounting for approximately $2.28 billion, or 20.8% of the relevant requests. China followed with $1.77 billion, equivalent to 16.1%, while Egypt accounted for $1.20 billion, or 10.9%. Italy and Russia were the next largest countries of origin.

The beneficiary-country rankings were different.

The United Arab Emirates ranked first, with approximately $2.53 billion, representing 23.1% of accepted requests. Türkiye followed with $2.07 billion, or 18.8%, while Egypt accounted for $1.09 billion, equivalent to 10%. China and Switzerland were also among the leading beneficiary countries.

The differences reflect how international commercial transactions are recorded. The country from which a good or service originates may differ from the country associated with the beneficiary of a financing request.

International trade can involve manufacturers, suppliers and contracting businesses operating across several jurisdictions. The published CBL tables do not provide enough information to identify the commercial arrangements underlying individual transactions.

For Libya's import market, the figures nevertheless provide a useful account of international trade relationships. Türkiye, China and Egypt remain prominent in the origin data, while the beneficiary figures reveal the importance of additional commercial and payment destinations.

A more detailed comparison with customs statistics would help explain how these financing relationships correspond to goods actually entering the country.

How does the $19.34 billion figure relate to Libya's $4.7 billion foreign-exchange shortfall?

The commercial-bank data form part of a wider financial picture published by the Central Bank of Libya.

In its September 2026 revenue and expenditure statement, the CBL reported approximately $17.6 billion in oil-related receipts and royalties remitted to the bank during the first nine months of the year.

Over the same period, total foreign-currency uses and obligations reached approximately $22.3 billion, leaving a reported shortfall of $4.7 billion.

According to the CBL, the gap was covered through investment returns associated with its deposits, securities portfolios and gold holdings.

The $22.3 billion figure includes foreign-currency obligations beyond the commercial-bank transactions covered by the $19.34 billion report. The two measures therefore describe different parts of Libya's foreign-currency activity and should not be treated as interchangeable.

The CBL also reported foreign assets of approximately $95 billion at the end of September 2026, compared with $99.4 billion at the end of 2025. That decline provides context for the country's external financial position, although it cannot be attributed entirely to the reported shortfall without a more detailed examination of changes in the bank's assets and investment income.

These developments are connected to Libya's wider fiscal structure. Oil remains the dominant source of public revenue, while government spending and domestic economic activity generate substantial demand for foreign goods and services.

As examined in LIM's analysis of Libya's public finances in 2026, the country's heavy reliance on oil revenue leaves government finances exposed to changes in production and international prices.

In its April 2026 assessment of Libya's economy, the International Monetary Fund warned that the country's fiscal trajectory was creating pressure on the exchange rate, international reserves and inflation.

The IMF recommended stronger expenditure controls, improved fiscal transparency and reforms to the foreign-exchange market. It also highlighted restrictions on private-sector financing and the need to improve the country's financial and business environment.

These concerns provide context for the CBL's banking statistics. Foreign-exchange allocation operates within an economy where oil receipts finance much of the country's external spending capacity, while domestic businesses need reliable payment services to purchase goods and equipment abroad.

What do the figures reveal about Libya's economy?

The September report provides a detailed picture of foreign-exchange activity across Libya's commercial banking system. Its figures reveal a substantial change in the composition of transactions, even though the overall amount used by banks increased only modestly.

The rapid growth in transfers is the clearest example. Their value increased by more than $2.32 billion from the corresponding period in 2025, while letters of credit and personal-purpose allocations both declined.

The concentration of transfers within National Union Bank and Wahda Bank adds another dimension. The published data establish the amounts handled by those institutions, although further information would be needed to explain the distribution.

The sector-level figures are relevant to understanding demand for import financing. Food products, production inputs, construction materials and machinery were among the largest categories of accepted private-sector requests, reflecting the importance of foreign-currency access to Libya's commercial and industrial activity.

However, the published statistics leave important questions unresolved. They do not identify the causes of the transfer surge or establish whether every approved financing request resulted in completed imports. They also provide limited information about the eventual contribution of imported equipment and materials to domestic production.

For businesses, the reliability of international payment arrangements can influence purchasing decisions and project execution. For policymakers and researchers, better reporting on transaction purposes and completed imports would improve the assessment of how foreign currency supports economic activity.

How does Libya's foreign-exchange system affect investors and businesses?

Libya's banking system continued to process substantial foreign-currency transactions during the first nine months of 2026, despite continued pressure on the country's exchange rate and external finances.

For companies importing machinery, industrial inputs or consumer products, access to foreign currency is closely connected to the ability to arrange international payments and maintain commercial relationships with overseas suppliers. The procedures governing letters of credit and transfers can therefore affect the timing and financial planning of business operations.

The CBL's data show that the channels used for those transactions changed substantially during 2026. Letters of credit remained dominant, but transfers became a much larger part of commercial-bank foreign-exchange activity.

The report also provides more detailed information about financing requests associated with food, manufacturing and construction, sectors that are important to domestic investment and economic development.

The unresolved issue is how these recorded banking transactions relate to final economic outcomes. Better information about completed imports, the purposes of transfers and the productive use of financed goods would help investors assess the commercial environment more accurately.

The CBL has already made detailed information available through its September report. Expanding the connection between those banking records and measurable economic activity would strengthen transparency and provide a clearer account of how Libya's foreign-exchange resources support its economy.

Frequently asked questions about Libya's foreign exchange

How much foreign exchange did Libyan banks use in 2026?

Libyan commercial banks recorded approximately $19.34 billion in foreign-exchange uses between January 1 and September 30, 2026, according to the Central Bank of Libya. The figure covers the first nine months of the year.

What were the main uses of foreign exchange in Libya?

Letters of credit accounted for 52.3% of commercial-bank foreign-exchange uses during January to September 2026, followed by personal-purpose allocations at 33.6% and transfers at 13.9%. Merchant-card transactions represented approximately 0.2%.

Why did bank transfers increase by 654% in 2026?

Commercial-bank foreign-exchange transfers increased from approximately $356 million during January to September 2025 to $2.68 billion during the equivalent period of 2026. The CBL's published figures establish the increase but do not provide enough information to determine precisely which regulatory or commercial factors caused it.

Research methodology and sources

This article is based primarily on the Central Bank of Libya's commercial-bank foreign-exchange report for January to September 2026 and its September 2026 revenue and expenditure statement.

Additional context comes from the International Monetary Fund's April 2026 assessment and contemporaneous reporting on CBL foreign-exchange measures.

Libya Investment Monitor calculated selected bank concentration figures using the CBL's published statistics. Actual banking foreign-exchange uses and accepted financing requests are treated as separate measures. Accepted requests are not assumed to represent completed imports.

All figures refer to January through September 2026 unless otherwise stated.

For more information about how LIM evaluates its sources, see Libya Investment Monitor's sourcing standards.