The Rebirth of Libya Central Bank: A Decade in the Making


After a decade of inactivity due to the ongoing civil war, the Central Bank of Libya has finally been re-established.

This significant development comes as a result of a meeting between Governor Sadiq Al-Kabir and Deputy Governor Mari Muftah Rahil in Tripoli.

The Rebirth of Libya Central Bank: A Decade in the Making
The Governor of the Central Bank of Libya, Al Sidiq Omar Al Kabir, (R) and his Deputy, Mari Muftah Rahil, (L) announced the unification of the Central Bank of Libya on 20 August 2023 [CBL]
The Central Bank of Libya had been divided since 2014 when a separate bank was established in the eastern part of the country. This division came as Libya itself became divided amidst the chaos of the civil war. However, with the recent announcement, the hope is that this division will be mended, bringing about a sense of unity and stability.

Prime Minister Abdul Hamid Al-Dbeibeh of the Government of National Unity expressed his support for the decision and emphasized the importance of unity. He welcomed the announcement, urging the Central Bank officials to continue their efforts in addressing the problems that arose due to the previous division.

The decision to reunify the Central Bank of Libya has received praise from the international community, with the United States stating that it is a critical step towards Libya’s economic stability and development. They described it as an example of reconciliation across all state institutions, which will pave the way for future elections.

Libya, being rich in oil reserves, has faced significant challenges in profiting from this valuable resource due to the instability caused by the ousting of Muammar Gaddafi in 2011. With the reunification of the central bank, there is hope that the country can overcome these challenges and achieve domestic stability.

The re-establishment of the Central Bank of Libya is a positive and much-needed development for the country. It will play a crucial role in restoring economic stability and paving the way for the reconstruction of a nation torn apart by years of conflict.

The role of the Central Bank is to manage the country’s monetary policy, regulate the banking sector, and oversee the financial system. With a unified central bank, Libya can now effectively manage its financial resources and work towards rebuilding its economy.

The Rebirth of Libya Central Bank: A Decade in the Making
The Rebirth of Libya Central Bank: A Decade in the Making.

A key challenge that the central bank will face is the deep-rooted corruption that has plagued Libya for years. Efforts to address corruption and foster transparency within the banking system will be critical in ensuring the success of the newly re-established central bank.

Another important aspect of the central bank’s role will be to attract foreign investment and promote economic growth. Rebuilding a war-torn nation requires significant financial resources, and the central bank will play a crucial role in facilitating investment and allocating funds towards reconstruction efforts.

In addition to addressing economic challenges, the central bank will also play a vital role in promoting social stability. The ongoing civil war has left many Libyans displaced and in dire need of basic services and support.

The central bank, working in collaboration with the government, will need to develop strategies to address these social challenges and improve the quality of life for all Libyans.

Hakim Abdul
Hakim Abdul is a highly accomplished journalist who specializes in reporting on North African affairs with a deep understanding and passion for the region, Abdul has established himself as the go-to correspondent for all matters related to politics, governance, and current affairs in North Africa. Renowned for his insightful analysis and comprehensive coverage, Abdul diligently investigates and reports on the complex and ever-evolving political landscape of the region.


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