The Central Bank of Libya, separated into two branches, announced on Sunday August 20 its reunification in this country plagued by divisions and security chaos for more than a decade. The Central Bank of Libya (CBL) is “become a unified sovereign institution again”the governor and his deputy said in a statement, saying they “continue efforts to overcome the consequences of the division” into two branches.
Al-Seddik Al-Kebir, governor of the CBL, an institution based in Tripoli (west), and Marii Moftah Rahil, governor of the rival branch based in the east, made this announcement after a “extended meeting, in the presence of directors and consultants” of both branches, according to the press release. Mr. Rahil becomes, in the wake of this reunification, the“assistant to the governor”.
The hydrocarbon revenues of Libya, a country with the most abundant oil reserves in Africa, are managed by the CBL in Tripoli, which decides on the allocation of funds to the various state bodies, including the government.
Two governments have been vying for power for a year in Libya: that of the west, of Abdelhamid Dbeibah, and that of the east, supported by the powerful Marshal Khalifa Haftar. “This is an important step to improve the performance of this sovereign institution”welcomed Mr. Dbeibah on Facebook, recalling his government’s commitment to “strengthen transparency and information procedures”.
“Creating Momentum”
The UN Support Mission in Libya (Manul) welcomed the reunification of the CBL, expressing the “hope that it will help create momentum towards the unification of all political, security and military institutions in the country”according to a statement on its site.
For Washington, this “unity illustration is an important example” for the other institutions, indicated on X (ex-Twitter) the American embassy in Libya, encouraging “the CBL leaders to pursue (…) with concrete measures the integration of the financial and supervisory systems, in particular by relaunching the CBL board of directors”.
A unification process was launched in December 2021 within the Central Bank, split since 2014, like many other state institutions due to power struggles between rival camps. The CBL in Tripoli was recognized by the international community, as was the UN-recognized government in Tripoli. Another branch was installed in Bayda (east).
The existence of two competing branches has hampered the implementation of a single monetary policy as the Libyan dinar has fallen sharply since the 2011 uprising and the fall of Muammar Gaddafi’s regime.
In July 2020, the UN announced that it had finalized the process to launch an independent international audit of the two branches, seen as a major step forward on the road to reunification.