Libya’s Central Bank Governor Removed in Abrupt Move
Presidential Council Appoints New Governor Amid Tensions
One of Libya’s dueling authorities unilaterally fired the country’s powerful central bank governor in an abrupt move that is likely to inflame tensions in the divided North African country.
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.
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.
About the Removed Governor
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.
About the Central Bank
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.
Reaction to the 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 the central bank governor is likely to exacerbate tensions in Libya, where the country is already divided between rival authorities. The appointment of a new governor without input from the east-based parliament and the Supreme Council of State is seen as illegitimate by some.
FAQs
Q: Who was removed as central bank governor?
A: Gov. Sadiq al-Kabir was removed as central bank governor.
Q: Who was appointed as the new central bank governor?
A: Mohamed Abdul Salam al-Shukri, an economist and former deputy governor, was appointed as the new central bank governor.
Q: Why was al-Kabir removed?
A: Al-Kabir faced criticism from officials on both sides of the country’s political divide in allocating Libya’s oil money, leading to calls for his removal.
Q: What is the current situation in Libya?
A: Libya is currently divided 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.
