The United Nations is working hard to help solve a serious issue in Libya involving the country’s central bank. Libya has been dealing with conflict and chaos ever since its longtime leader, Muammar Gaddafi, was overthrown by NATO in 2011. Now, the country is split between two rival governments—one in the west, in the capital city of Tripoli, and one in the east, based in Benghazi. These two sides can’t agree on who should control the central bank, which manages Libya’s money from oil sales and pays government salaries.
The bank crisis began when the Tripoli-based government removed Sadiq al-Kabir, the governor of the Central Bank of Libya (CBL). Al-Kabir had been in charge of the bank since 2011, but the western government replaced him with Mohamed Abdul Salam al-Shukri, a former deputy governor. This decision angered the rival eastern government in Benghazi, which argued that the move was illegal and done without proper consultation. In protest, the eastern side, supported by powerful military leader Khalifa Haftar, shut down Libya’s oil production, which is the country’s main source of income.
Recognizing how dangerous this situation could become, the United Nations decided to step in and mediate. The UN Support Mission in Libya (UNSMIL) organized talks in Tripoli, where representatives from both sides—the House of Representatives (HoR) from Benghazi and the Presidential Council from Tripoli—gathered to discuss how to fix the problem.
These talks were intense and lasted late into the night. Despite the tensions, the UN said that some progress was made. The rival factions came to important agreements that could restore trust in the central bank, which is crucial not only for Libyans but also for international partners who are concerned about the country’s stability.
The central bank controls Libya’s foreign reserves and oil revenue, making it one of the most powerful institutions in the country. When it’s not functioning properly, the entire country suffers—especially when oil production is halted. The UN Security Council warned the rival factions to avoid any actions that could worsen the situation. Instead, they pushed for a peaceful solution that wouldn’t further destabilize Libya.
After the first day of talks, both sides agreed to draft a potential solution to the central bank crisis and present it to their respective governments for approval. The hope is that these discussions will result in a finalized agreement that will bring much-needed stability back to Libya, which has been struggling with division and chaos for over a decade.
The future of Libya’s finances, oil production, and even its overall peace depend on the outcome of these negotiations. The world is watching closely, hoping that the UN’s efforts will help the country avoid further conflict.
