Libyan Central Bank Chaos Threatens National Stability

A struggle to control the Central Bank of Libya (CBL) has ignited an oil production blockade, raising the prospect of a severe crisis for the major energy exporter. Western factions' attempt to oust governor Sadiq al-Kabir has led to a standoff with eastern factions, threatening economic paralysis and potential violence.

The struggle to control the Central Bank of Libya (CBL) has sparked an oil production blockade, marking the onset of a severe crisis for the country's energy sector. Western factions recently attempted to oust the long-standing governor, Sadiq al-Kabir, which has led to escalating tensions with eastern factions.

The situation has disrupted vital economic functions, including the central bank's ability to conduct transactions, which poses a risk to Libya's basic economic stability. Kabir claimed that militias are threatening bank staff and their families, further complicating the standoff.

The oil blockade, maintained by eastern factions, is depleting the CBL's funds and has resulted in the stoppage of state salary payments and foreign remittances. This alarming scenario could lead to a return of long electricity blackouts and heighten the risk of renewed violence among armed factions.

(With inputs from agencies.)