Egypt refuses to print Libyan dinars

Published October 27th, 2011 - 08:24 GMT
Libyan central bank
Libyan central bank

 

Egypt’s Central Bank (CBE) declined a request from the Libyan National Transitional Council (NTC) to print Libyan dinars during the early months of the revolt, Asharq Al-Awasat newspaper recently reported.
A source at the CBE told the newspaper that the NTC requested the bank’s assistance but Egypt had to decline due to “political and economic” considerations.
As for Libyan money in Egypt, the source, speaking on condition of anonymity, denied the presence of any accounts in the name of the late Libyan leader, Muammar Gaddafi, who was killed in his hometown of Sirte.
The source added that any Libyan money related to the former regime that is in Egypt is held there in the name of government institutions.
Other financial sources said that Libyan funds in Egyptian banks are “unofficially” frozen, in what is described as precautionary measures due to the sensitive strategic relations between the two countries.
Egypt also declined many requests by Libyan banks during the revolt to liquidate letters of guarantee, ensuring that no funds were unlawfully transferred or squandered.
Similar measures were taken by the CBE during the Egyptian uprising when restrictions were placed on foreign exchanges and money transfers.
The exact size of Libyan assets, estimated to be roughly between $10 and $15 billion in Egypt is not known, but it is distributed between banking, oil and agriculture. The Libyan government owns 38.7 per cent (1.3 billion EP) of the Arab Investment Bank, based in Egypt, with total investments amounting to $232.5 million, alongside other direct and indirect Libyan investments in the sector. (Source: www.yallafinance.com)

 


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