The United Nations mission in Libya has resumed talks between rival factions in Tripoli on Wednesday, aiming to resolve the ongoing central bank crisis that has crippled oil production and jeopardized the country’s stability.
A key step towards resolving the crisis was the recent agreement by Libya’s two legislative bodies – the House of Representatives and the High Council of State – to jointly appoint a new central bank governor. This move could potentially defuse tensions over the control of the country’s oil revenue.
The central bank plays a crucial role in Libya’s economy, serving as the sole legal repository for oil revenue and paying state salaries. However, the ongoing dispute between the two legislative bodies has led to a stalemate and a significant decline in oil production.
The U.N. mission emphasized the urgency of reaching a consensual solution to the crisis, warning of the severe negative consequences if the situation remains unresolved.
The Presidential Council, the country’s executive body, has become increasingly involved in the crisis, with its head, Mohammed al-Menfi, recently replacing the veteran central bank governor. This move sparked protests from eastern factions, who responded by halting oil flows from Libyan oilfields.
Libya has been plagued by instability since the 2011 uprising, with the country divided into eastern and western factions. While a ceasefire was achieved in 2020, deep-seated divisions persist.