jeudi 25 octobre 2007

Libyen Exchange Regulation

Exchange :
The Libyan dinar is not a convertible currency; it is used only for the current operations in the country.
However, any local or foreign Investor may have the right to open an account into foreign exchange or transferable currencies with a Commercial Bank or the Libyan Arab Foreign Bank.

The accounts in foreign exchange are lawful as following:
- by deposits in foreign exchange,
- sums transferred from abroad,
- sums transferred from another domestic account in foreign exchange,
- the foreign currency equivalent,
- banking interest on the aforesaid accounts and,
- any legal channel.

Functioning of accounts in foreign exchange:

The accounts shall be used for the following purposes:
- cash payment in foreign currency to the account holder himself or to any payee whom he specifies,
- the execution of transfers in a foreign currency inside Libya or abroad based on the account holder’s request,
- transfers to another account in foreign exchange and
- any legal purposes.

Also, the foreign currency account holder can sell all or a portion of the balance to banks. Article 43 of the banking Law n°1 of 1373 P.D. (2005)

Foreign exchange transactions shall be executed through banks and licensed entities for that purpose by the Central Bank of Libya. In this matter, each bank and entity shall prepare a periodic statement of the foreign exchange that it sells or buys, the foreign exchange that it receives for transactions involving the export of goods and services, and foreign exchange balances at its disposal.

To be noted in this respect that such entity must transfer all said foreign exchange to the Central Bank of Libya at the times stipulated by the Central Bank of Libya. Article 47 of the banking Law n°1 of 1373 P.D. (2005)

Transfer of foreign currency: The Investor shall have the right to re-export his invested capital in the following cases:
- Expiry of the project period
- Liquidation of the project
- Sale of the project wholly or partly
- Five (05) years period delay starting from the date of investments permits’ approval.

He can also retransfer the foreign capital abroad after six months delay from the date of the entry if difficulties beyond his control prevent investment thereof.

Transfer of net profits and benefits distributed and interests achieved by the project is annually allowed.

The foreign employees shall have the right to transfer abroad their salaries, wages and any other benefits or gratuities.


However , bringing into or taking out of Libya Libyan currency except in the cases and according to the conditions stipulated by the board of directors of the Central Bank of Libya in a decree published in the register of Actions.

Transfer of Shares:
The ownership of a Libyan project may be transferred wholly or partly to another investor by consent of the Libyan Foreign Investment Board (LFIB).
The new owner shall replace the previous regarding rights, duties and obligations.
Article 17 of the Libyan Law No. (5) of 1426 PB (1997) for Promotion of Investment of Foreign Capital, as Amended by Law No. (7) of 1371 PD (2003)
The value of goods and services inside Libya shall be paid in the Libyan dinar, the equivalent value thereof in means of banking payment authorized by the Central Bank of Libya may be accepted.
Article 48 of the banking Law n°1 of 1373 P.D. (2005)
Libyan Shares Acquisition in a foreign Companies: Transfers and transactions of a capital nature from and to Libya may be executed according to the terms and conditions set by the Board of Directors of the Central Bank of Libya.

The operations made between the Maghreb countries are organized and facilitated by the Convention on a unified procedure of the bilateral payments.
Article 52 of the banking Law n°1 of 1373 P.D. (2005)

Credits in foreign exchange:
Commercial Banks operating in Libya can grant credit in foreign exchange with sufficient guarantees. Article 53 of the banking Law n°1 of 1373 P.D. (2005)

2 commentaires:

Anonyme a dit…

Bonjour à tous,

je fais partie d'un groupe d'étudiants français qui réalisons un mémoire sur la Libye dans le cadre de l'obtention de notre diplôme à Sciences Po.

Nous sommes à la recherche d'informations précises sur le droit libyen. Votre article est l'un des plus complets qu'il nous a été donné de trouver sur le web.

Est-il possible de vous demander quelles sont vos sources et quelles lectures, facilement accessibles, vous nous recommanderiez au sujet du droit des affaires libyen.

Merci beaucoup de votre aide,

très cordialement,

Thibault VALLET
(tibo32 at caramail.com

Totie a dit…

Good words.