Libya central bank seeks global payments access
Libya’s central bank is moving to restore its link to the global payments system, a step that could eventually allow Libyan banks to re-enable Visa and Mastercard services and ease a long-running bottleneck in trade and investment.
Saad Bin Sharada, a member of Libya’s advisory State Council, said Governor Naji Issa’s visit to London and the understandings reached with international financial and banking institutions could help resolve the correspondent-banking problem that has kept Libya’s lenders weakly connected to the outside financial system.
That matters because correspondent banking is the plumbing that lets banks clear cross-border payments, open letters of credit and settle foreign trade. For Libya, where sanctions-era scars and weak international trust have limited access, a stronger correspondent bank relationship would be a prerequisite for anything from card payments to smoother import finance.
Bin Sharada said the payoff would extend beyond banking. Restoring credibility with international lenders could encourage British companies and others to look more closely at Libya’s energy, infrastructure and investment opportunities, he said, turning a technical banking fix into a broader opening for the economy.
For investors, the narrative is about whether Libya can finally convert diplomatic and banking engagement into executable market access. If the talks lead to operational ties with major financial institutions, it would support trade flows, improve settlement reliability and lower friction for foreign firms considering exposure to the country.
The development also feeds into a wider payments theme for global networks such as Visa and Mastercard, which depend on bank connectivity and local compliance to expand into underpenetrated markets. The next test is whether the London talks produce concrete implementation steps rather than another round of promises.
| Entity | Gains | Losses |
|---|---|---|
| Libyan banks | ▲Better correspondent access | ▼Isolation from global payments |
| Visa, Mastercard | ▲Potential new card volume | ▼Delayed market entry |
| Libyan importers and businesses | ▲Easier trade finance | ▼Payment bottlenecks |
| Foreign investors, especially UK firms | ▲Improved market access | ▼Higher operating friction |