Diplomatic failings and ‘elite bargains’ prolonging Libya turmoil: Analysts
Al Jazeera
With the central bank in turmoil, analysts say that diplomatic efforts in Libya are failing its people.
After weeks of tension that saw the Central Bank of Libya (CBL) shuttered, salaries go unpaid and cash vanish, the country’s two rival governments appeared ready to accept a United Nations-brokered agreement to resume operations, before once more reverting to a deadlock familiar to many in the country.
The internationally recognised Government of National Accord (GNA) in the west had tried to replace CBL Governor Sadiq al-Kabir, accusing him of mishandling oil revenues and going to the extent of sending armed men in to remove him from his office.
Angered, the Government of National Unity (GNU) in eastern Libya, which is supported by renegade commander Khalifa Haftar, shut down much of the country’s oil production, which it controls, in protest.
“This is serious,” said Jalel Harchaoui, an associate fellow with London’s Royal United Services Institute. “The CBL, although weaker now than it was a few years ago, remains a linchpin to the nation’s access to hard currency.”
He added that the CBL funds most of Libya’s imports of food, medicines and other staples, which the country cannot last long without.
