Libya is grappling with another severe crisis as the governor of its central bank, Sadiq al-Kabir, and other high-ranking officials are forced to flee the country due to threats from armed militias. This development underscores the deepening instability that has plagued Libya since the 2011 NATO-backed ousting of Muammar Gaddafi. The central bank, a crucial institution controlling billions in oil revenue, finds itself at the heart of this latest political turmoil.
According to a Financial Times report, al-Kabir revealed that armed militias are terrorizing bank staff and, in some cases, abducting their family members to coerce them into continuing their work. This situation highlights the pervasive insecurity and lawlessness that have become commonplace in Libya. Al-Kabir’s flight is not just a personal crisis but a reflection of the broader chaos impacting the country’s financial and political systems.
The immediate trigger for this upheaval was an attempt by Tripoli-based Prime Minister Abdul Hamid Dbeibah to remove al-Kabir. Dbeibah, who leads the internationally recognized Government of National Unity in western Libya, sent a delegation to seize control of the central bank governor’s office. The conflict between Dbeibah and al-Kabir had been escalating, with the former accusing the latter of financial mismanagement and presenting a misleadingly optimistic view of the economy. In response, al-Kabir has accused Dbeibah of illegal actions and undermining UN-negotiated accords on leadership appointments at the central bank.
The crisis has further deepened Libya’s political divide. The Benghazi-based eastern government, led by Prime Minister Osama Hammad, responded by shutting down oilfields, a move that has exacerbated the country’s economic instability. This eastern government, although not internationally recognized, wields significant influence through its military leader, Khalifa Haftar, who controls most of Libya’s oil resources.
The situation at the central bank is chaotic. Banking operations have been suspended for nearly a week, leaving citizens unable to access their money or conduct transactions. The Tripoli-based Presidential Council has appointed a new board of directors, but confusion reigns as staff are uncertain whether to adhere to the old or new directives. The banking paralysis is causing widespread frustration, with rising prices and delayed public salaries adding to the public’s distress.
The international community, through the UN Support Mission in Libya (UNSMIL), has called for a suspension of unilateral decisions and the protection of central bank employees. UNSMIL is working to mediate the crisis, but the path to resolution remains uncertain as Libya’s political factions, backed by global powers like Russia and Turkey, continue to vie for control.
This latest crisis at the central bank is a stark reminder of the ongoing instability that continues to undermine Libya’s attempts at recovery and unity. As the country navigates through these turbulent times, the resolution of this financial and political turmoil will be crucial in determining Libya’s future stability and prosperity.
According to a Financial Times report, al-Kabir revealed that armed militias are terrorizing bank staff and, in some cases, abducting their family members to coerce them into continuing their work. This situation highlights the pervasive insecurity and lawlessness that have become commonplace in Libya. Al-Kabir’s flight is not just a personal crisis but a reflection of the broader chaos impacting the country’s financial and political systems.
The immediate trigger for this upheaval was an attempt by Tripoli-based Prime Minister Abdul Hamid Dbeibah to remove al-Kabir. Dbeibah, who leads the internationally recognized Government of National Unity in western Libya, sent a delegation to seize control of the central bank governor’s office. The conflict between Dbeibah and al-Kabir had been escalating, with the former accusing the latter of financial mismanagement and presenting a misleadingly optimistic view of the economy. In response, al-Kabir has accused Dbeibah of illegal actions and undermining UN-negotiated accords on leadership appointments at the central bank.
The crisis has further deepened Libya’s political divide. The Benghazi-based eastern government, led by Prime Minister Osama Hammad, responded by shutting down oilfields, a move that has exacerbated the country’s economic instability. This eastern government, although not internationally recognized, wields significant influence through its military leader, Khalifa Haftar, who controls most of Libya’s oil resources.
The situation at the central bank is chaotic. Banking operations have been suspended for nearly a week, leaving citizens unable to access their money or conduct transactions. The Tripoli-based Presidential Council has appointed a new board of directors, but confusion reigns as staff are uncertain whether to adhere to the old or new directives. The banking paralysis is causing widespread frustration, with rising prices and delayed public salaries adding to the public’s distress.
The international community, through the UN Support Mission in Libya (UNSMIL), has called for a suspension of unilateral decisions and the protection of central bank employees. UNSMIL is working to mediate the crisis, but the path to resolution remains uncertain as Libya’s political factions, backed by global powers like Russia and Turkey, continue to vie for control.
This latest crisis at the central bank is a stark reminder of the ongoing instability that continues to undermine Libya’s attempts at recovery and unity. As the country navigates through these turbulent times, the resolution of this financial and political turmoil will be crucial in determining Libya’s future stability and prosperity.
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