The Central Bank of Libya, separated into two branches since 2014, announced Sunday, August 20, its reunification. The governor and his deputy signed a press release and say they are continuing efforts to overcome the consequences of the division of this key institution for the Libyan economy.
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The unification process was launched two years ago, it has just been completed. The two branches were divided between the eastern and western regions. To the west was the headquarters of the “historic” Libyan Central Bank (CBL) in Tripoli, the institution recognized by the international community. To the east, there was a branch of the bank based in Benghazi, a region under the control of the powerful general Haftar.
A centerpiece
There CBL is a centerpiece because it is the repository of billions of dollars in the country’s oil revenues. Very strong tensions over the redistribution of these funds had hitherto undermined the reunification projects. According to the joint communiqué, the governor of the rival branch installed in the east becomes deputy governor of the unified CBL.
Recent disagreements
After years of divisions that have affected the banking system as well as the country’s monetary policy, Prime Minister Abdelhamid Dbeibah sees ” an important step to improve the bank’s performance “. However, this unification should not mask recent disagreements. At the end of June 2023, Osama Hamad, the head of the parallel government installed in the East, threatened to block hydrocarbon exports. it demanded a seizure of oil revenues managed in the West.
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