The Treasurer’s Guide to Trade Finance

Libya

Economic and trade overview

Key figures

Economy 2009 Trade 2010 (USD billion)

GDP (USD) 70 bn Goods Exports 49

GDP per capita (USD) 11,183 Imports 26

GDP volume growth (year-on-year) + 15.6% Net + 24

Population (2011) 6.42 m Services Exports 0.4

Discount rate (end 2011) 3.00% Imports 6.1

Exchange rate USD / LYD (end 2011) 0.7945 Net – 5.7

BoP (goods, services & income) as % of GDP + 15.6% Source: IFS, IMF, January 2013

International/Regional memberships

Common Market for Eastern and Southern

Africa (COMESA): Since 3 June 2005.

International Monetary Fund (IMF):

Since 17 September 1958.

World Trade Organization (WTO): Libya

is not a full member of the WTO; it has

observer status.

Government trade policy

ƒ As part of its WTO accession process,

begun in 2004, Libya has liberalised its trade

policy over recent years. However, many

non-tariff obstacles remain, including service

fees on imported goods and a monopoly on

some imports. UN trade sanctions against

the country were lifted in 2003, followed by

the lifting of US unilateral sanctions in 2006.

ƒ Framework trade agreement negotiations

began between Libya and the European

Union were suspended in 2011. Libya is

a member of the Greater Arab Free Trade

Area (GAFTA). Trade tariffs between the

17 GAFTA member countries have been

eliminated. In 2007 Libya and Egypt formed

a bilateral trade and customs agreement,

and in 2010 Libya and the USA formed a

trade and investment framework agreement.

ƒ Libyan regulations have permitted the

creation of free trade zones since. No free

trade zones have yet been established.

Currency and exchange controls

Official currency: Libyan dinar (LYD)

Exchange rate arrangement: conventional

peg against the IMF special drawing right

(SDR) at a rate of LYD 1 per SDR 0.5175.

The USD is the intervention currency.

Exchange controls are administered by the

Central Bank of Libya (www.cbl.gov.ly).

Bank accounts

ƒ Residents can hold foreign currency

accounts domestically and abroad.

ƒ Residents are not permitted to hold LBD

accounts abroad.

ƒ Non-residents are permitted to hold domestic

currency accounts in Libya with some

restrictions.