Financial crisis in Libya: the Central Bank suspends operations due to political tensions.

The crisis in Libya's financial sector has intensified following the Central Bank of Libya's (CBL) decision to suspend its operations amid growing political tension. The governor of the CBL, Sadiq Kabir, who has refused to step down, deeming his replacement "invalid," has reported attempts to storm the bank's headquarters by a committee of the Presidential Council. This situation has led other commercial banks in the country to follow the CBL's example and suspend their services, exacerbating financial instability in the North African nation. The confirmation of the cessation of operations by the Saray Bank for Trade and Investments and several other banking entities has left many Libyans without access to essential financial services, such as purchasing foreign currency and making international transfers through the SWIFT system. In a country where the economy is already facing multiple challenges, this situation adds an additional layer of uncertainty that could have lasting repercussions on economic stability. The trigger for this crisis dates back to the recent decision by the Presidential Council to replace Kabir as governor of the CBL, shortly after the temporary detention of one of its directors, Musab Muslim. This action, deemed a "demagogic method" by the CBL, has highlighted the internal struggles for control of the central bank, a key institution in managing Libya's economy. The appointment of Mohamed Shukri as the new governor of the CBL has added further confusion to the matter, as he has stated he would not accept the position without a prior agreement between the High State Council and Parliament. This lack of consensus among the country's main institutions reflects the deep political division that persists in Libya, a country split between different factions and rival governments. In response to the rising tension, the Prime Minister of the National Unity Government (NUG), Abdelhamid Dbeiba, has formed a security committee to address the situation in Tripoli, the capital. This includes an order for the withdrawal of militias that had been mobilized amid chaos and distrust. However, the effectiveness of these security measures is questionable, as control over the capital and public institutions remains fragile. The impact of this crisis on the financial sector is felt throughout the country, where the economy has been struggling to recover from years of conflict and destabilization. The uncertainty surrounding the leadership of the CBL and the lack of a clear legal framework for Kabir's succession have led to an erosion of confidence in financial institutions. Kabir has requested that the Minister of Interior, Imad Trabelsi, ensure the protection of the CBL headquarters in Tripoli against what he considers illegal attempts to seize the bank. The government's response to these accusations and the speed with which the situation is resolved will largely determine the credibility of Libyan institutions in the eyes of the public. As the crisis unfolds, international institutions are watching the situation with concern. The international community has urged Libyan leaders to seek constructive dialogue to resolve differences and prevent the situation from worsening, which could lead to external intervention or sanctions. Libya's economy, which has historically relied on its oil resources, is at a critical juncture. The disruption of banking services could lead to increased inflation and shortages of goods, particularly affecting the most vulnerable segments of the population. Without a concerted effort to stabilize the CBL and restore confidence in the financial system, Libya's future remains uncertain. The situation in Libya serves as a reminder of the challenges faced by nations attempting to rebuild after prolonged conflicts. Resolving this crisis is not only vital for the financial sector but also crucial for the political and social stability of the country as a whole. The international community must closely monitor these developments and work to support Libya in its pursuit of lasting peace and a sustainable economy.