The new governor-designate is Naji Issa, currently director of the Bank’s foreign exchange department, while Marai al Barassi, former deputy governor, has been chosen as deputy governor.
The crisis at the Central Bank of Libya could see a turning point in the coming hours. This afternoon, the United Nations Support Mission in Libya (UNSMIL) will preside over the official signing ceremony of the agreement on the appointment of the new governor of the Central Bank, in the presence of several diplomatic representatives.
The new governor-designate is Naji Issa , currently director of the Bank’s foreign exchange department, while Marai al Barassi , former deputy governor, has been chosen as deputy. This agreement aims to resolve the crisis triggered by the removal of Al Siddiq al Kabir , former governor of the Bank, by the Libyan Presidential Council. Naji Issa, from the Warshafana region, west of Tripoli, is a finance expert, active in the Central Bank since the 1990s. Al Barassi, former deputy to Al Kabir, is a leading figure in the Libyan financial sector. Their appointment is considered essential to prevent a possible economic collapse of the country, as the Central Bank plays a key role in managing Libya’s economic resources, particularly the oil sector.
“In Libya, an agreement is not concluded until it is concluded,” a Libyan source close to the dossier told “Agenzia Nova”. The political dynamics of the country, in fact, have seen numerous agreements scrapped at the last minute in the past. Among these, those of Palermo, Paris, Geneva and Bouznika. Here too, the agreement on the Central Bank still has to overcome institutional and political obstacles. The fragile political context, internal divisions and external interference threaten to complicate its implementation.
First of all, it is not clear what the position of the Presidential Council and the Government of National Unity (GUN) led by outgoing Prime Minister Abdulhamid Dabaiba is . Another element to be ascertained is how the agreement will be approved by the House of Representatives and the High Council of State. Must the House decide whether to approve the agreement with a simple or qualified majority?
The High Council of State, for its part, is divided into two opposing factions: one led by the current president Khaled al Mishri , a supporter of a policy of opening towards the east of the country, and the other headed by the outgoing president Mohammed Takala , an ally of Dabaiba. It is not yet clear which of the two will have to approve the nomination.
Ziad Daghim , an advisor to Presidential Council Chairman Mohamed Menfi , has previously raised objections to the agreement’s legitimacy. In a letter to UN Special Envoy Stephanie Khoury , Daghim argued that the appointment of the Central Bank Governor should fall under the remit of the Presidential Council, as stipulated in the 2015 Skhirat Political Agreement. He specified that the appointment should take place in a public and transparent session with a quorum of two-thirds of participants, a difficult outcome to achieve given the fragmentation of the House of Representatives. However, the House voted to abolish the Presidential Council, creating an institutional deadlock that further complicates the situation.
Moussa al Kuni , Vice President of the Presidential Council, welcomed the agreement, stressing the importance of maintaining the unity of the Central Bank. According to Al Kuni, professional management of the financial institution will be crucial to stabilizing the Libyan economy and overcoming the political stalemate, with the aim of facilitating the path to national elections. In contrast, the other Vice President, Abdullah Al Lafi , has not yet expressed his opinion on the agreement.
President Menfi, speaking at the 79th United Nations General Assembly, harshly criticized the House of Representatives, accusing it of creating parallel bodies and using state resources as tools of political pressure. Menfi stressed that Libya, after more than a decade of internal conflicts and external interference, needs shared solutions and a return to dialogue. The President also reiterated that the responsibility for ensuring the security of citizens falls on the Presidential Council.
In addition to the Central Bank crisis, another important issue to resolve is the dispute over the presidency of the High Council of State between Khaled al Mishri and Mohammed Takala. The dispute, which has reached the courts, has created deep divisions within the Council and risks further delaying crucial decisions for the future of the country. Mishri was temporarily suspended from his role as president by the Tripoli South Appellate Court, following an appeal filed by Takala.
Mishri has contested the ruling, calling it “worthless”, arguing that the court has no jurisdiction over constitutional issues. This dispute could also directly impact the appointment of the new Central Bank governor and his deputy, given the importance of the High Council of State in decision-making processes. In this context, Qatar is trying to mediate between the two factions, with Ambassador Khaled Mohammed bin Zabin al Dosari engaged in talks with both leaders.
The Central Bank agreement is vital to avoid a halt in economic activity, particularly in the oil sector. Suffice it to say that General Khalifa Haftar, commander of the Libyan National Army (LNA), has reduced the country’s oil production by almost 70 percent, in protest against the removal of Al Kabir. Libya, divided between the UN-recognized government in Tripoli and the government in Benghazi, supported by Haftar, risks facing economic and financial paralysis.
The blockade of oil and gas exports, combined with the difficulty of accessing the global payments system, could bring the country to the brink of an even more serious crisis. If the Libyan economy is unable to collect the proceeds from the sale of energy resources, the country may be unable to import essential goods such as food, medicine and fuel.
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