TRIPOLI, Libya – Unofficial Libyan banknotes, some printed by Russia, have been exchanged for real dollars, exacerbating the dinar’s devaluation, according to three sources familiar with the matter. Some of these notes were printed in Russia and exported to eastern Libya this year, while others were printed illicitly within Libya.
The new banknotes have been described as counterfeit by the Central Bank of Libya (CBL) in Tripoli but are being converted into hard currency on the black market or through local banks in Libya’s eastern regions. These activities have significantly impacted the Libyan economy, according to sources from Libya’s eastern government, a Libyan banking source, and a diplomatic source.
The illicit money is reportedly used to fund infrastructure projects in the east following last year’s devastating floods. Additionally, the funds may be used to finance Russian mercenary activity in Libya and the Sahel, the diplomatic source added. Russia’s involvement in introducing new banknotes into Libya was flagged to Reuters by The Sentry, an international investigative and policy group focused on corruption and war crimes.
Neither the Tripoli-based Central Bank of Libya nor its branch in Benghazi responded to Reuters’ requests for comment. There was also no immediate response from the Libyan National Army, which controls eastern Libya. The Russian state printer, Goznak, did not respond to a written request for comment.
Libya split in 2014 between warring eastern and western factions. Despite a 2020 ceasefire, a political solution has been elusive, with ongoing conflict. The U.S. sanctioned Goznak in 2019 for printing more than $1 billion in counterfeit Libyan currency without specifying when the notes were printed.
Credit: Reuters
