Central Bank of Libya Uncovers Over LD 3.5 bn in Counterfeit Currency; PM Aldabaiba Demands Urgent Investigation

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The Central Bank of Libya (CBL) revealed today a significant financial discrepancy during its recent operation to withdraw the old LD 50-dinar banknotes (second series) printed in Russia by the eastern-based Libyan authorities. The operation uncovered counterfeit notes amounting to more than 3.5 billion Libyan dinars (LD).

In its official statement, the CBL disclosed that only 6.65 billion dinars of the LD 50 note were officially printed in Russia. However, the total quantity of this denomination received by the CBL amounted to 10.211 billion dinars—surpassing the official issuance figure by over 3.5 billion dinars. This gap suggests large-scale counterfeiting of the banknotes outside the bank’s oversight.

The CBL expressed deep concern over this discrepancy, warning that it poses serious risks to the Libyan economy. It added that such unregulated printing has contributed to a significant decline in the value of the Libyan dinar, increased demand for foreign currencies in the black market, and exacerbated threats related to money laundering and the financing of terrorism.

The bank further clarified that the first issue of the LD 50 notes had an official print volume of 7 billion dinars, and of this, 6.828 billion dinars were returned to the bank, showing a relatively controlled issuance for that series.

As a result of these developments, the CBL’s Board of Directors has decided to phase out the LD 20 denomination from both its British-printed first edition and Russian-printed second edition. This preemptive step is intended to prevent similar breaches and restore confidence in Libya’s currency. The final date for circulating the current LD 20 notes has been set for September 30, 2025, after which they will be completely withdrawn and replaced with a more secure version.

In addition to initiating internal measures, the Central Bank has formally reported the matter to the Attorney General and has informed the Libyan House of Representatives. The CBL assured the public that the outcome of the count and investigation will be announced once its internal departments complete the process.

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Reacting promptly to the revelation, Libyan Prime Minister Abd Alhamid Aldabaiba issued a strong statement. He emphasised that the CBL’s confirmation of a 3.5-billion-dinar discrepancy validates previous government warnings about counterfeit currency flooding the market. He noted that these fake notes were likely used to purchase foreign currency, indirectly financing those responsible for the counterfeiting operation.

“This is a dangerous threat to our nation’s economic stability and directly harms the daily lives and income of Libyan citizens,” Aldabaiba said. He called upon the Attorney General to immediately launch a thorough investigation and hold accountable all parties involved in what he described as a serious economic crime that “can no longer be ignored or tolerated.”

It is worth recalling that during the period of political division in Libya, the eastern-based authorities unilaterally printed money in Russia, violating the CBL’s regulations. This action was widely condemned by the international community, except by Russia, which supported the move.