Govt. to exchange Libyan dinar

The Ministry of Finance has agreed to exchange the Libyan Dinar brought in by Nepali migrant workers. The ministry is preparing to seek approval from the Cabinet in this regard soon to offer some relief to Nepalis forced to return from war-torn Libya.

Of the 1,869 workers returning from Libya, more than 1,350 individuals have brought a total of 265,000 Libyan Dinar, but the home country does not exchange the currency. Nepal Rastra Bank (NRB) that has been holding amount for safety said it cannot exchange the Libyan Dinar as it is not included in its foreign currency exchange list.


The ministry is planning to exchange the currency with the money available in the Foreign Employment Welfare Fund. As per the plan, it will reimburse the amount to the fund later by exchanging it in the international market. Currently, according to the ministry and NRB officials, Dinar is cannot be exchanged anywhere in the world because of its removal from the list of currencies transacted in the market.

“The exchange of Libyan Dinar will provide some relief to Libya returnees eyeing compensation,” said Kumud Khanal, general secretary of Nepal Association of Foreign Employment Agencies. He said both the ministries concerned—Ministry of Finance and Ministry of Labour and Transport Management—will write to the Cabinet soon in this regard.

Libya returnees have also been demanding compensation from the government. However, even though a task force has been formed to look over the matter, no decision has been made so far. Khanal said around 300-400 workers are in a dire need of compensation as they could not stay there for a long time and earn some money.

According to existing NRB, it exchanges currencies that are listed in its formal exchange list. As far as currencies that are not listed in the list are concerned, it sends them to Singapore. However, even Singapore is not buying the Libyan Dinar currently as it has been blacklisted.

Finance ministry had earlier sought the buying and selling rate of Libyan Dinar from the central bank. “We forwarded the exchange rate a few days ago,” said a high level official at NRB, adding that the currency can be exchanged later after it comes into practice in the currency market.

Currently, the welfare fund has around Rs 580 million collected from workers leaving the country for foreign employment. If the Cabinet approves the proposal to exchange money from the welfare fund, the Foreign Employment Promotion Board that manages the fund will have to release Rs 15.5-16 million-equivalent to 265,000 Libyan Dinar.