The US and the UN are urging diplomacy to resolve the escalating conflict over control of Libya’s central bank, as rival factions vie for dominance. The Tripoli-based government, led by Abdul Hamid Dbeibah, recently dismissed long-serving governor Sadiq al-Kabir, sparking tensions with the eastern administration, which opposes the move. The bank, holding $27 billion in reserves, is critical to Libya’s economy, which relies heavily on oil revenues. Kabir has led the bank since 2011 and, before his dismissal, accused Dbeibah of overspending. According to him, Dbeibah’s spending excesses put pressure on the exchange rate and led to rising inflation in the country. Following Kabir’s dismissal, the eastern government threatened to shut down oil production and exportation in the country, unless the Tripoli-based government reinstated him. Meanwhile, the West, including the IMF, disapproves of the Dbeibah-led administration’s unilateral decision and has called for talks to prevent further destabilization.
SOURCE: THE GUARDIAN
US and UN Call for Talks to Resolve Libyan Central Bank Dispute
