The Central Bank Of Libya
By:Omar Khattaly
Mr. Kabir’s decision to flee the country has effectively placed Libya’s financial institutions in a state of siege, held hostage by his own world of power, which he has maintained a firm grasp on for the past decade.
It is regrettable that the assertions made by the governor in the Financial Times article are not accurate.
The strength of Libya’s militias is largely attributable to the Governor’s role in providing significant financial support to their operations through a complex network of government institutions that are under the control of militia members.
Mr. Kabir is largely responsible for the current economic, financial, and security challenges facing Libya and should not be entrusted with the role of governor once more.
The current state of the Central Bank of Libya necessitates a comprehensive restructuring, with the appointment of an independent technocrat whose mandate would be to assuage Libyan citizens’ financial concerns and to guarantee that international financial markets are reassured of the enforcement of international laws and regulations.
The West’s financial isolation of Libya will serve to exacerbate the situation. Libya will descend further into chaos and instability, with repercussions that will have a significant impact on the region and beyond. These effects will have a particularly detrimental effect on the Sudan civil war, further destabilizing Mali, Niger, and Chad, and leading to a significant influx of refugees along Europe’s coastal line.
In essence, additional financial sanctions on Libya will serve the interests of those who currently stand to gain the most, including Mr. Kabir. It is therefore recommended that pressure be maintained on the Libyan Parliament and other political actors to facilitate prompt discussions and a decision on a new governor who can command broad support.
