• Misrata and Triploi

  • Thursday, June 6, 2024 at 10:19 AM
    Last Update : Sunday, June 9, 2024 at 11:58 AM

Libyans Tackle Liquidity Crisis by Using Electronic Card Payments

(AWP) - Mohammed Ramadan has to carry cash in addition to his electronic payment card whenever he goes shopping in the Libyan capital of Tripoli, so as to avoid the inconvenience of some stores not accepting card payments, or encountering situations when his card may not work, such as when the systems are down.

He hopes that commercial banks in Libya will improve the electronic card payment service because it helps citizens avoid situations where they “have to borrow cash or rely on others to purchase what they need.”

The Central Bank of Libya has begun taking measures to reduce the use of cash and require commercial establishments to sell via electronic payment in order to obtain documentary credits.
The central bank called on those wishing to open documentary credits to provide evidence of accepting sales through dedicated electronic payment systems of commercial banks and licensed payment companies.

Additionally, the country’s central bank has urged bank managers to ensure that service companies, such as airlines, insurance companies, and others, adopt the same mechanism to improve the quality of banking services and enhance control over foreign currency.

According to Adnan Zarmouh, a Libyan businessman and owner of a commercial establishment, electronic payment services are beneficial if their usage expands nationwide.

He pointed out some of the disadvantages that still deter Libyans from using banking cards for their daily payments.

He said, “The fees charged by commercial banks, backed by the central bank, make people prefer to deal in cash. This is something that the central bank can address by making it commission-free to encourage people and shops to use cards, thereby reducing queues at the banks every day.”

Abdul Malek Abu Shaala, an employee at a travel agency in the city of Misrata, similarly said that the electronic payment service adopted by his company helps to tackle the country’s liquidity crisis, reducing people’s need to visit the bank for cash.