Libya’s Central Bank Governor Removed in Move Likely to Fuel Tensions

Presidential Council in Tripoli Unilaterally Fires Gov. Sadiq al-Kabir

The presidential council in the capital of Tripoli, which is allied with the government of Prime Minister Abdul Hamid Dbeibah that controls western Libya, removed Gov. Sadiq al-Kabir, according to a decree issued late Sunday.

New Governor Appointed

In his place, the council appointed Mohamed Abdul Salam al-Shukri, an economist and former deputy governor, as the new governor for the Central Bank of Libya.

Background on Al-Kabir

Al-Kabir had led the central bank since October 2011 — the year that Libya was plunged into chaos after a NATO-backed uprising toppled longtime dictator Moammar Gadhafi.

During that time, he accumulated significant influence and power but also faced criticism from officials on both side of the country’s political divide in allocating Libya’s oil money. In recent months, that criticism has turned into calls for his removal.

Tensions in Libya

Oil-rich Libya has been split between a U.N.-supported government in the capital, Tripoli, and rival authorities based in the east. Different armed groups and foreign governments have backed each side.

The Central Bank is the repository for billions of dollars annually in oil revenue as well as foreign reserves. In 2014, it splintered along the country’s political fault lines. Its internationally recognized headquarters remain in Tripoli, while an eastern branch allied with military commander Khalifa Hifter was set up in Benghazi.

Criticism of Al-Kabir’s Removal

However, Libya’s east-based parliament and the Supreme Council of State, an advisory body based in Tripoli, called al-Kabir’s removal illegitimate. The two bodies should also have a say in who is appointed to the position — a decision that shouldn’t be up to the presidential council alone.

That’s according to interim regulations agreed to under U.N.-backed talks meant to oversee the country’s reunification.

Conclusion

The removal of Gov. Sadiq al-Kabir is likely to inflame tensions in Libya, already a deeply divided country. The new governor will face significant challenges in reconciling the different factions and stabilizing the country’s economy.

FAQs

Q: Why was Gov. Sadiq al-Kabir removed?

A: Al-Kabir was removed by the presidential council in Tripoli, citing criticisms of his management of the Central Bank and the allocation of oil money.

Q: Who has been appointed as the new governor?

A: Mohamed Abdul Salam al-Shukri, an economist and former deputy governor, has been appointed as the new governor of the Central Bank of Libya.

Q: Is the removal of Al-Kabir likely to improve relations between the different factions in Libya?

A: It is unclear at this point whether the removal of Al-Kabir will improve relations between the different factions in Libya. The country remains deeply divided, and the appointment of a new governor is likely to be met with resistance from some parties.