LIBYA’S central bank, located in Tripoli, has announced that it would halt all activities until one of its senior officials, kidnapped earlier in the day, is freed. This decision could have significant economic ramifications, as the central bank is the internationally recognized institution responsible for managing Libya’s oil revenues—a crucial income source for the country, which remains divided between two rival administrations in Tripoli and Benghazi.
According to Reuters, the Libyan Central Bank has reported that Musaab Muslam, head of its IT department, had been abducted by unknown assailants, prompting the institution to suspend operations. The bank condemned the incident, denouncing the lawless behaviour of certain groups. It also disclosed that other officials had been targeted by threats, pushing them to demand intervention from the appropriate authorities before operations could resume.
Reuters reports that U.S. Ambassador to Libya Richard Norland recently expressed concerns over attempts to forcibly change the central bank’s leadership, warning that such moves could jeopardize Libya’s access to international financial markets. Last week, Norland held discussions with central bank governor Sadiq Kabir to address the mounting pressure from armed groups surrounding the bank’s headquarters in Tripoli. He stressed that disputes over the distribution of Libya’s wealth should be resolved through transparent and inclusive negotiations to achieve a unified national budget.
Libya has experienced widespread unrest since the 2011 NATO-backed uprising that toppled longtime leader Muammar Gaddafi. The country split in 2014 between factions in the east and west, further complicating efforts to restore peace. The conflict has persisted despite a truce in 2020 and attempts to reunify institutions under a formal political solution. Recently, clashes between armed groups in eastern Tripoli resulted in several casualties and injuries.
