Libya’s central bank in Tripoli has suspended all operations indefinitely following the kidnapping of a senior official, Musaab Muslam, head of the bank’s information technology department. The bank announced the closure on Sunday, stating that work would not resume until Muslam is safely released and security is restored for its staff.
As the sole internationally recognized depository for Libya’s vital oil revenues, the central bank’s shutdown poses a significant threat to the country’s already fragile economy. Libya has been divided between rival governments in Tripoli and Benghazi for years, with the central bank playing a crucial role in managing the nation’s wealth amidst ongoing conflict.
Escalating Threats and Kidnapping Incident
The kidnapping of Muslam by an unknown party is the latest in a series of threats faced by central bank officials. The bank condemned the abduction, describing it as an unlawful act by rogue elements operating outside the law. In response to these escalating threats, the bank decided to suspend its operations, urging authorities to take immediate action to protect its staff and ensure their safety.
The bank’s statement also highlighted the broader security risks, noting that other officials had received threats as well. This development raises concerns about the stability of Libya’s financial institutions and the safety of those working within them.
The situation has drawn international attention, with U.S. Ambassador to Libya, Richard Norland, warning that any attempts to forcibly replace the bank’s senior management could jeopardize Libya’s access to international financial markets. Norland recently met with the bank’s governor, Sadiq Kabir, to discuss the growing concerns about armed groups surrounding the bank’s headquarters in Tripoli.
Norland emphasized that disputes over the distribution of Libya’s wealth should be resolved through transparent and inclusive negotiations, rather than through violence or coercion. The ambassador’s comments reflect the delicate balance that must be maintained to ensure Libya’s continued participation in global financial systems.
Ongoing Conflict and Political Uncertainty
Libya has remained in a state of turmoil since the 2011 NATO-backed uprising that toppled longtime dictator Muammar Gaddafi. The country has been split since 2014 between warring factions, with the Government of National Unity (GNU) in Tripoli led by interim Prime Minister Abdulhamid al-Dbeibah and a rival administration in the east under military commander Khalifa Haftar.
Despite a ceasefire agreement in 2020 and efforts to reunify the country’s institutions, a lasting political solution remains elusive. The recent violence, including clashes between armed factions in Tripoli’s suburbs that left at least nine people dead and 16 wounded, underscores the fragile security situation.
The central bank’s suspension of operations is a stark reminder of the ongoing instability in Libya and the challenges facing its institutions. As the situation develops, the international community and Libyan authorities will need to work together to address the security threats and prevent further deterioration of the country’s economic and political landscape.
Source: Reuters
