Libya's Rival Legislative Bodies Sign Agreement to End Central Bank Crisis

Representatives from Libya’s eastern and western legislative bodies have signed a UN-facilitated agreement to resolve the crisis over the leadership of the Central Bank of Libya (CBL). The deal aims to end disruptions in oil production by nominating an interim governor and deputy governor, with approval and board formation processes set to follow.

In a significant development, representatives of Libya's rival eastern and western legislative bodies have signed a United Nations-facilitated agreement to resolve an ongoing crisis over the leadership of the Central Bank of Libya (CBL). The deal nominates Naji Mohamed Issa Belqasem, the CBL's director of banking and monetary control, as interim governor. Mari Muftah Rahil Barrasi, who was appointed deputy governor in 2023, will continue in his role.

The conflict initially erupted when the head of the Presidential Council in Tripoli, Mohammed al-Menfi, attempted to replace veteran central bank governor Sadiq al-Kabir. This move provoked eastern factions to halt oil production in protest. The acting head of the U.N. Libya mission (UNSMIL), Stephanie Koury, emphasized the urgency of resuming oil exports to stabilize Libya's economy.

The legislative bodies—the House of Representatives (HoR) in Benghazi and High State Council (HSC) in Tripoli—have also agreed to allow one week for the approval of the nominees. The interim governor would then form a board of directors within two weeks. The crisis has crippled Libya's oil production, with current crude exports drastically reduced from over 1 million barrels per day in August to about 400,000 barrels in September.

(With inputs from agencies.)