Eastern branch of Libyan Central Bank launches its own coins made in Russia

Libya has been under deep turmoil since Gaddafi exit and civil war. There are several divisions in the country and confusions for an outsider.

However, this bit of news is interesting. Eventually, it all boils down to control of monetary system for the governments/authorities:

Authorities in eastern Libya will circulate their own coins for the first time to ease shortages of money, a Central Bank official said on Friday, in another sign of disunity in the country that has two rival governments in east and west.

The new coins, made in Russia, will join Russian-made paper currency that has already been issued in the eastern half of the country, which is outside the control of the UN recognized government based in Tripoli in the west.

Libya, once one of the richest countries in Africa, has faced a sharp decline in living standards since an uprising in 2011 toppled dictator Muammar Qaddafi. The two rival governments and an array of armed groups are vying for control.While the UN-backed government in Tripoli has struggled to control territory and make an impact, the east of the country has a separate Cabinet with a prime minister and a local branch of the central bank.

The new coins worth one Libyan dinar — about 75 US cents at the official rate but less than 12 cents on the black market — would be valid from Nov. 2, replacing banknotes that are mostly worn out, said Ramzi Al-Agha, head of the liquidity committee at the eastern central bank branch.The coins are copper colored, weigh slightly more than a €2 coin or a new British pound and feature a picture of a plant native to eastern Libya’s Green Mountains, with the words “Central Bank of Libya.”

The shipment of coins had arrived via the port in the main eastern city of Benghazi which authorities just reopened after a three-year closure due to fighting.

There is a bit of everything in this development. Issuance of parallel currency in one region of the country (soon one currency will trade at a discount vis a vis other), foreign power minting the coin which kind of controls the region sitting in Russia, Ports used to bring in the currency…

2 Responses to “Eastern branch of Libyan Central Bank launches its own coins made in Russia”

  1. Eastern Libya appoints its own central bank Governor.. | Me Stock Broker Says:

    […] blog had written earlier how Eastern part of Libya has its own coins imported from […]

  2. Eastern Libya appoints its own central bank Governor.. – Courtier en Bourse Says:

    […] blog avait écrit plus tôt comment la partie orientale de la Libye a ses propres pièces importées de […]

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