Libya, a North African nation rich in oil, has been in turmoil for over a decade. Since 2011, after the NATO-backed uprising that overthrew Muammar Gaddafi, the country has been plagued by instability, armed conflicts, and political division. One major issue that highlights the chaos is the ongoing crisis involving Libya’s Central Bank (CBL).

The Central Bank Crisis: A Battle for Control

The latest crisis erupted when the Presidential Council of Libya decided to replace Sadiq Al-Kabir, the governor of the Central Bank, in August 2024. Al-Kabir has been in the position since 2011, despite the fact that his term should have ended years ago. But Libya is a nation where rules are often ignored, and Al-Kabir has stayed in power.

Libya is split between two rival governments. The internationally recognized government, called the Government of National Unity (GNU), is based in Tripoli in the west. The other, which controls the east, is backed by the country’s parliament, based in Benghazi. Both sides have their own Central Banks, but the one in Tripoli is the only one recognized globally, and it controls most of Libya’s oil revenue. Despite this, Al-Kabir’s leadership has been highly controversial, and many Libyans want him replaced.

But there’s a problem: the Presidential Council doesn’t have the authority to remove him. According to Libyan law, only the parliament can do that. This legal issue has only deepened the crisis.

Why is the Central Bank So Important?

The Central Bank of Libya is not just any bank; it is the heart of the nation’s financial system. Libya’s wealth comes mostly from its oil, and all the money from oil sales goes into the Central Bank. The bank also controls all of Libya’s foreign financial transactions, including importing goods that the country relies on, like food and medicine.

But under Al-Kabir’s leadership, Libya’s banking system has struggled. Many people can’t access their own money because the banks often run out of cash. ATMs are scarce, and electronic payment systems are almost nonexistent, forcing people to rely on cash for nearly everything. Even getting a paper check approved can be a complicated process.

So why hasn’t Al-Kabir been removed earlier? One reason is that the Central Bank funds not just the government but also the militias that control much of the country. These armed groups depend on the Central Bank’s money, so any change in leadership threatens their survival, making Al-Kabir’s position even more politically charged.

The Bigger Picture: A Crisis of Legitimacy

Libya’s problems go beyond just the Central Bank. The entire political system is broken. The country’s parliament was elected in 2014, yet it still holds power, even though its term officially ended years ago. Likewise, the Higher Council of State, a key political body in Tripoli, was elected in 2012 and remains in power today. This lack of accountability is one of the reasons why Libya remains in such disarray.

To make matters worse, Libya has no unified military or police force. Instead, the country is controlled by armed militias, some of which are involved in criminal activities. These groups often clash with each other, making everyday life dangerous for ordinary Libyans.

The political chaos has made it nearly impossible to hold new elections, even though most Libyans want to vote for a new government. Many current politicians are likely afraid they will lose power if elections are held, so they have no real interest in seeing them happen.

Foreign Interference: Making Things Worse?

Since Gaddafi’s fall, foreign countries have been deeply involved in Libya’s affairs, often making the situation worse. Back in 2011, NATO intervened under the guise of protecting civilians, but their real goal was to remove Gaddafi. After his death, Libya plunged into chaos, and foreign meddling hasn’t stopped since.

Today, countries like the U.S., France, and the UK still interfere in Libya’s politics. For example, when the idea of holding elections in 2021 was raised, these nations got involved in the debate, even publicly opposing the candidacy of Gaddafi’s son, Saif al-Islam Gaddafi. This interference embarrassed Libya’s parliament so much that it declared the UK ambassador persona non grata.

When the Presidential Council announced its plan to remove Al-Kabir, the U.S. embassy quickly issued a statement warning against the move. This kind of interference only adds to Libya’s troubles, making it harder for the country to solve its own problems.

The Real Issue: Who Controls Libya?

At its core, the Central Bank crisis is about more than just who runs the bank. It raises deeper questions about Libya’s sovereignty and the legitimacy of its government institutions. None of the country’s current leaders were elected by the people, and many have overstayed their terms. Foreign interference only complicates the situation, as outside powers often have their own interests at heart, not Libya’s.

The country desperately needs new elections to restore legitimacy to its institutions, but this will only happen if the political leaders, militias, and foreign powers agree to step back and let the Libyan people decide their own future.

Until then, the crisis surrounding the Central Bank—and the country as a whole—will continue to simmer, with no end in sight.

Libya’s situation is a stark reminder of how foreign intervention, political corruption, and armed conflict can tear a nation apart. For Libya to rebuild, it will need to regain control of its own destiny, free from both internal chaos and external meddling.