Libya Central Bank in Crisis Amid Governor's Exile and International Isolation

Libya's central bank is embroiled in a crisis that has affected oil production and severed its ties with international financial systems. Veteran governor Sadiq al-Kabir, ousted by political factions, is in self-imposed exile in Istanbul. Efforts by western factions to control the bank have led to internal operational stability but failed to restore international financial relations.

Libya's central bank is engulfed in a crisis that has severely impacted oil production and cut ties with international financial systems, the bank's veteran governor, Sadiq al-Kabir, revealed on Thursday. Speaking from Istanbul, Kabir, who was ousted by political factions, highlighted the ongoing turmoil.

Kabir noted that western Libyan factions controlling the Central Bank's internal systems have managed to stabilize domestic transactions, though this has not extended to international dealings. Major international institutions, including the IMF and U.S. Treasury, have suspended transactions with the bank.

The IMF expressed its support for UN efforts to resolve the crisis, while Kabir remains hopeful for reinstatement through UN-backed negotiations between Libya's eastern parliament and the Tripoli-based High State Council.

(With inputs from agencies.)