Libya allows imports using parallel market currency
The Ministry of Economy and Trade issued a decree permitting temporary use of foreign currency from the parallel market for goods importation until March 31, 2027.
Libya's Ministry of Economy and Trade announced on April 11, 2026, that goods can be imported using foreign currency from the parallel market. Minister Suhail Abu Shiha issued Decree No. (555) of 2026, allowing this on a temporary basis until March 31, 2027, subject to legal regulations.
The ministry stated this U-turn aims to regulate import operations and oversee trade financing, excluding certain essential goods and medicines that require prior approval. This decision follows previous attempts to restrict imports through bank payments, which were previously reversed.
The current system of documentary letters of credit is seen as unequal, dominated by a few large businesses that obtain most hard currency. These businesses are perceived to be in collusion with bank officials, leaving small and medium-sized enterprises unable to secure funding through official channels and forcing them to use the parallel market.
Why it mattersSmall and medium-sized businesses in Libya are affected because they are forced to use the parallel market for import funding.