Summary:

On 26 September 2024, the United Nations Support Mission in Libya (UNSMIL) hosted the signing of an agreement reached between the House of Representatives (HoR) based in Tobruk and the Tripoli-based High Council of State in an effort to resolve the Central Bank crisis.  

The signing of the agreement was followed by the appointment of Naji Issa, current director of the Bank’s Foreign Exchange Department, as governor. Marai Al-Barassi, former deputy governor, was chosen to serve again as deputy governor. The two are required to appoint a board of directors within two weeks.  

The Head of UNSMIL, Stephanie Khoury, announced that “promises” had been received from the authorities in Benghazi regarding the reopening of oil fields and ports to normalize oil production and export. 

Meanwhile, a Tripoli Court issued a ruling declaring the elections for the presidency of the Libyan High Council of State invalid due to the presence of two people who did not have the status of members. 

Accepting the appeal submitted by the former head of the council, Mohamed Takala, the court decided to suspend the elected president, Khaled Al-Mishri’s duties. However, al-Mishri described the ruling as void. 

Outlook: 

The agreement is a key step toward resolving the Central Bank Crisis and, mostly critically to the Libyan economy, restoring oil production and exports. However, the agreement is not necessarily guaranteed as tensions between the Tripoli-allied members and the East-allied factions within the High Council of the State could hinder its implementation. 

Also, the Tripoli-based government’s position toward the agreement is unclear, as the Presidential Council did not directly participate in the signing. President Mohamed Al-Menfi seemed to support the deal, stating in an interview in New York that the agreement might open the path to tackling corruption in the country, including the smuggling of heavily subsidized fuel.  

Nevertheless, Presidential Council Advisor, Ziad Daghim, argued that the appointment of the Central Bank Governor should fall within the remit of the Presidential Council and not the HoR.  

It is likely that the agreement will take time to be implemented, leaving significant space for additional disagreements to arise between the myriad actors.

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