MISRATA, Libya: In Libya, a shortage of cash in the banking system has pushed many to turn to cards for payments after more than a decade of war and instability has hammered the country’s financial system.
Across most Libyan cities, withdrawing money is akin to an obstacle course in which hundreds wait, often for hours, outside heavily guarded banks for a turn to take out cash.
But the money all too often runs out early due to short supply.
Mistrust in that system means money is rarely reinjected back into banks, with Libyans preferring instead to keep cash on hand.
And while cashless culture has yet to take root, “the younger generations are easily adopting it,” said Abdullah Al-Gatet, an employee at a bank in Misrata, the country’s third largest city.
Withdrawals at bank counters are capped at 1,000 dinars ($206) each time.
This, along with the cash shortage, means civil servants who make up the bulk of Libya’s working population often receive their salaries late.
There is a growing awareness among Libyans of “the importance of electronic solutions to facilitate daily transactions, especially in times of liquidity crisis,” said 30-year-old Gatet, “even if the infrastructure is still insufficient.”

Libya has been wracked by instability and conflict since the 2011 NATO-backed uprising that overthrew and killed longtime dictator Muammar Qaddafi.
It is currently divided between a United Nations-recognized government in the capital Tripoli and a rival administration in the east backed by general Khalifa Haftar.
In Misrata, a major port city and commercial hub about 200 kilometers (120 miles) from Tripoli, the population of 400,000 are increasingly signing up to receive bank cards.
But the shift toward cash-free transactions is not without stumbling blocks.
There are few ATM machines and many vendors do not accept card payments as they are not equipped with payment terminals.
Economist Khaled Al-Delfaq, 42, said that while the shortages have pushed many to shift to using cards, there needs to be an accompanying shift in awareness, and work needs to be done to “make these services more accessible.”
But in the seeming absence of other options, many have already been converted.
Among those are Mohamed Al-Soussi, who was shopping for his family at a supermarket in Misrata.
“Transactions are more simple with the card. I don’t need to carry large wads of cash with me anymore,” he said.

Libya’s political upheaval has also precipitated another strange side-effect — multiple prints of 50-dinar banknotes.
Libya’s institutions have since 2014 been caught between the two camps vying for power in the oil-rich country, and its central bank is no exception.
Until last year, it had been split in two, with an internationally recognized headquarters in the capital and another in the east, with each printing bills signed off by their respective governors.
In 2012, new 50-dinar bills, the largest available denomination, were put into circulation to make life easier for consumers who often make cash payments in the thousands.
But last April, the central bank announced the withdrawal of those notes from circulation due to the proliferation of counterfeits.
“The situation became even more complicated with businesses refusing the 50-dinar bills,” said Moussab Al-Haddar, a 45-year-old teacher who was visiting his bank branch to request a card.
The central bank had initially set a deadline for the end of August for the notes to go out of circulation, before extending it to the end of the year.
In a bid to address the current crisis, the bank injected 15 billion dinars into the system in late October, while urging banks to facilitate the issuing of cards to clients.
 

JERUSALEM/CAIRO: Israeli leaders hailed on Tuesday a pledge by US President-elect Donald Trump that there would be “hell to pay” in the Middle East unless hostages held in the Gaza Strip were released ahead of his Jan. 20 inauguration.
The reaction in Gaza was less enthusiastic.
Writing on Truth Social, and without naming any group, Trump said the hostages had to be freed by the time he was sworn in.
If his demand was not met, he said: “Those responsible will be hit harder than anybody has been hit in the long and storied History of the United States of America.”
During their deadly 2023 attack on Israel, Hamas-led militants captured more than 250 people. Some have been released or freed but around half of them are still in Gaza, although at least a third of these are believed to be dead.
Israeli ministers lined up to thank Trump for his hard-hitting words.
“How refreshing it is to hear clear and morally sound statements that do not create a false equivalence or call for addressing ‘both sides’, but rather clarify who are the good and who are the bad,” said Finance Minister Bezalel Smotrich.
“This is the way to bring back the hostages: by increasing the pressure and the costs for Hamas and its supporters, and defeating them, rather than giving in to their absurd demands.”
Foreign Minister Gideon Saar said simply on X: “Thank you President Trump.”
Likewise the families of the missing hostages expressed their gratitude. “It is now evident to all: the time has come. We must bring them home NOW,” the families forum said.

NEGOTIATIONS STALLED
Israel and Hamas have held on-off negotiations since October 2023, but after an initial hostage release in November, little progress has been made with both sides blaming each other.
Responding to Trump’s post, senior Hamas official Basem Naim said Israeli Prime Minister Benjamin Netanyahu had sabotaged all efforts to secure a deal that involved exchanging the hostages for Palestinian prisoners held in Israeli prisons.
“Therefore, we understand (Trump’s) message is directed first at Netanyahu and his government to end this evil game,” he told Reuters.
Gaza political analyst Ramiz Moghani said Trump’s threat was directed at both Hamas and its backer Iran, and warned that it would embolden Israel to not expel Palestinians from swathes of Gaza but also annex the nearby, Israeli-occupied West Bank.
“These statements have serious implications for the Israeli war in Gaza and the West Bank,” he told Reuters.
Mohammed Dahlan, like hundreds of thousands of Gazans, has had to flee his house because of the fighting and is desperate for the war to end. But he said he was shocked by Trump.
“We were hoping that the new administration would bring with it a breakthrough .... but it seems (Trump) is in complete agreement with the Israeli administration and that there are apparently more punitive measures ahead,” he said.