bank account in local bank ( aman bank etc)

Libyan bank accounts are for Libyan nationals, or Libyan companies. End of story.

It is possible to get a Libyan bank account as an expat.  I'm assuming that my employer has made special arrangements at the bank for this.  I haven't opened one myself yet, but will in the next few weeks.

Unless someone is insuring your deposits, I'm not sure I'd want to use one...

It's too bad that the Canadian banking system is a joke.  In the US and elsewhere you can get bank accounts with no foreign transaction fees.  Mine even rebates the foreign ATM fees.  The only money I lose is the cash rate they use for conversion.

The Canadian joke of a Banking system weathered the financial crisis just fine while the US and other banking giants were falling like dominoes........

We have never bothered with opening a local account, I don't really see any reason for it anyway. There is also the issue of declared income vs actual so companies don't really want expats to get into the official financial systems.

Everything is cash driven anyway so you need cash in hand not in the bank.

If your company has a set-up to help you get a local account it seems to be ok.  A few people are using it (by their own choice) where I work.  Not for the whole paycheck though, only a small amount.