Libya’s Warring Factions Agree to Jointly Appoint Central Bank Governor

Libya's legislative bodies from the east and west have agreed to jointly appoint a central bank governor, aiming to ease the conflict over oil revenue control. The agreement, made after UN-hosted talks, includes extending consultations and could potentially stabilize the country's oil production and economy.

Libya's legislative bodies from the country's two warring regions have agreed to jointly appoint a central bank governor, a move that could potentially ease the struggle for control over the country's vital oil revenues.

The House of Representatives in Benghazi, representing the east, and the High State Council in Tripoli, representing the west, reached this agreement after two days of talks hosted by the UN Support Mission in Libya. They aim to appoint the governor and a new board of directors within 30 days. This decision is crucial as Libya's central bank is the sole legal repository for the nation's oil revenue and responsible for paying state salaries across the country.

The factions have also extended their consultations for another five days, concluding on September 9. The battle began when the western faction, internationally recognized, attempted to oust veteran central bank Governor Sadiq al-Kabir. This triggered the eastern factions to shut down oil production, an action that threatened to undo four years of relative stability. Since some oil output has resumed, oil prices have dropped nearly 5%, signaling optimism among traders about the agreement's potential to boost oil flow.

(With inputs from agencies.)