Libya Appoints New Central Bank Leadership Amid Oil Crisis
In a significant political development, Libya's House of Representatives has unanimously approved the appointment of Naji Mohammed Issa Belqasim as the new governor of the Central Bank of Libya. This decision, made during a televised session on October 1, 2024, aims to address the ongoing crisis that has severely impacted the country's oil production and revenues, crucial for its economy. Alongside Belqasim, Marai Rahil Al-Barassi has been appointed as his deputy, marking a strategic move to stabilize Libya's financial system.
The political turmoil in Libya has led to a drastic decline in oil production, with the National Oil Corporation reporting a drop of more than 50% from usual levels. This situation has been exacerbated by disputes over the control of the Central Bank and oil revenues, which are vital for the national budget. The recent appointments are expected to help navigate these challenges, as both Belqasim and Al-Barassi have previously held key positions within the central bank.
The approval of the new leadership comes after a series of negotiations facilitated by the United Nations, aimed at reconciling the divided political landscape of Libya. The second deputy speaker of the House of Representatives, Misbah Al-Doma, confirmed that 108 representatives voted in favor of the appointments, signaling a rare moment of consensus in Libyan politics. The formation of the Central Bank's board of directors is anticipated within 10 days following this approval.
The backdrop of this political maneuvering includes a contentious decision by the head of the Libyan Presidential Council, Mohamed Al-Menfi, to replace the former governor, Al-Siddiq Al-Kabir. This move sparked protests from armed factions in eastern Libya, leading to a halt in oil flow from major fields, further complicating the nation’s economic recovery efforts. The impact of these changes on Libya's oil production and overall economic stability remains to be seen, but the new appointments could pave the way for a more unified approach to governance and resource management.
