The UN mission in Libya celebrates the appointment of the new Board of Governors of the Central Bank

UNSMIL emphasizes that this is “a significant step” towards compliance with the agreement between the opposing administrations.

Oct. 23 (EUROPA PRESS) –

The United Nations Support Mission in Libya (UNSMIL) celebrated this Tuesday that the Parliament based in the east of the country has approved the appointment of the six members of the Board of Governors of the Central Bank, in line with the agreement signed ago a month by the two opposing administrations.

“This marks a significant step in fulfilling the agreement facilitated by UNSMIL and signed on September 26. The Board of Governors is essential in ensuring that the Central Bank operates with independence, integrity, transparency and accountability, while managing Libya’s monetary policy and contributes to the country’s economic stability,” reads a statement.

UNSMIL has encouraged the new leadership to continue to “make tangible progress towards the reunification” of the Central Bank and to implement new measures “to improve its good governance, including the prevention of conflicts of interest.” Thus, he has also called for the adoption of “sound” policies to guarantee financial and economic stability in Libya.

“The Central Bank of Libya must be protected from political interference to maintain its credibility within the international financial system and effectively fulfill its essential role in the Libyan economy,” the mission concluded.

The crisis at the Central Bank erupted after the dismissal in August of the then governor, Sadiq al Kabir, which led to new tensions between the opposing administrations, including a blockade of oil fields by militias based in the east of the country. However, in September they reached an agreement to resolve the crisis, which subsequently led to the end of the aforementioned blockades, which affected oil export capacity, Libya’s main source of income.

Currently, Libya is divided into two administrations after the House of Representatives terminated the mandate of Abdul Hamid Dbeibé due to the postponement of the presidential elections in December 2021 and appointed Fazi Bashaga to the position, later suspended from office. and replaced by Osama Hamad. Dbeibé rejected the decision and chose to remain in office until elections were held.