The Central Bank of Libya is a 100 percent state-owned entity and enjoys the status of an autonomous corporate institution. The bank started its operations on 1 April 1956 after replacing the Libyan Currency Committee.
. The bank is headquartered in Tripoli. To ensure greater accessibility the bank has also set up three branches in Benghazi, Sebha and Sirte. The law that establishes the bank stipulates that the objective of the Central Bank of Libya shall be to maintain monetary stability in the country and ensure the sustained growth of the Libyan economy on the basis of the general economic policy of the state. The main functions of the bank are:
- Issuing and regulating the currency in the country
- Working towards ensuring a stable Libyan currency
- Maintaining and managing the official reserves of gold and foreign exchange
- Regulating the volume of credit in circulation in the country
- Initiating measures to deal with foreign or local economic and financial problems
- Acting as a banker to the commercial banks in the country and supervising their activities
- Advising the state on the formulation and implementation of financial and economic policy
- Carrying out any other functions normally performed by the central bank of a country
Management of the general affairs of the bank is in the hands of a Board of Directors. The board consists of the Governor as chairman, a Deputy Governor as Vice-Chairman and six other members. The Governor is the final authority responsible for the implementation of various policies of the bank.