The Libyan government appointed by the country’s parliament in Benghazi announced on Monday the suspension of oil production and exports from all fields and ports, declaring a state of force majeure until further notice.
This drastic move comes in response to the recent developments surrounding the Central Bank of Libya.
The decision follows the Libyan Presidential Council’s appointment of a new Central Bank Governor, Mohamed Al-Shukri, replacing the incumbent Sadiq Al-Kabir.
The appointment has been met with strong opposition from both the Libyan House of Representatives (HoR) and the High Council of State (HCS), which insist that the authority to appoint the Central Bank Governor lies with them, not the Presidential Council.
In response, Aguila Saleh, the Speaker of the Libyan House of Representatives, emphasized that the parliament is committed to keeping Sadiq Al-Kabir in his role as Governor to ensure the ongoing unification process of the Central Bank.
Saleh warned that any change in the position could lead to the closure of oil facilities and the suspension of revenue transfers to the Central Bank.
Saleh further condemned the continued transfer of Libya’s oil revenues to individuals he described as having come to power through “dubious and unsafe” means.
He insisted that Al-Shukri currently holds no official status and reaffirmed that both the HoR and HCS are determined to keep Al-Kabir in his post to safeguard the nation’s wealth.
The newly appointed Central Bank Board held its first meeting today at the bank’s headquarters, notably without the presence of the new Governor, Mohamed Al-Shukri, as reported by RT’s correspondent. This absence has raised questions about the future coordination between the new board members and the Governor.
Al-Shukri had previously stated on Friday that he would only accept the position if he received the backing of the country’s competing legislative bodies.
This Central Bank crisis is the latest manifestation of Libya’s deep-seated divisions. Since the fall of Muammar Gaddafi in 2011, the North African country, a major oil producer on the Mediterranean, has been engulfed in turmoil, with two rival governments—the eastern-based government supported by the parliament and the internationally recognized government in the west—vying for control. The capital, Tripoli, also remains a battleground for various armed factions, further complicating the political landscape.
The halt in oil production and exports, a key revenue source for Libya, could have severe implications for the already fragile economy and exacerbate the ongoing political and military conflicts.
