Eastern Libya Flooded With Counterfeit Currency Amid Reports Of Russian Involvement

Libya’s economy is currently facing a crisis as counterfeit banknotes, reported to be originating from Russia, were discovered in the market. It has led to the devaluation of the Libyan Dinar and has increased the economic instability of the country, which is already battling several problems.

As per the reports of Reuters, some of these banknotes were produced within Libya and were exchanged for real dollars. While the notes from Russia were exported to Eastern Libya, reported Reuters. The Central Bank of Libya has warned about the fake notes, as they are reportedly indistinguishable from the real notes.

According to an Eastern government source, the Central Bank termed it the counterfeit notes and they are being converted into hard currency through the black market or the local banks. The source stated further that the money is being used as funding for infrastructure projects in the East, the region devastated by floods, last year. While the diplomatic source says the money may also be used to fund the Russian mercenary activities in the country.

An organization called the Sentry, tapped Reuters on the reports of Russia’s involvement in exporting banknotes to Libya. According to the information given, the Sentry is an international investigative group which focuses on corruption and war crimes.

The Central Bank in Tripoli is yet to comment on the situation, despite several requests by Reuters. Nor did the Libyan National Army respond to the requests, as the eastern Libya region is under their control, as well as the Goznak, Russia’s state money printer.

From 2016 till the ceasefire in 2020, Russia has provided the Eastern region with billions of dinars, which was meant to aid Khalifa Haftar, the Eastern commander, and his government in Benghazi. The money imported between 2016 and 2020, was issued formally by the Central Bank’s Eastern branch in Benghazi and carried the signature of its governor, Ali al-Hibri. This move, gave way to economic splits within Libya, leading to different exchange rates across the country.