Economic expert Mohsen Al-Drija told our source that a repeat of the scenario in which the Central Bank’s accounts are frozen, halting dollar inflows, including oil revenues, would raise serious concerns.
“Changing the leadership of an institution such as the Central Bank of Libya attracts the attention of international financial and regulatory institutions. There is no doubt that the House of Representatives has the authority to dismiss an official under its jurisdiction if there are sufficient grounds and justifications, and to appoint a replacement in agreement with the High Council of State, in accordance with the political agreement currently in force. However, from an international perspective, the authority of whoever is currently authorized to sign off on the Central Bank of Libya’s transactions must be reviewed,” he said.
Al-Drija stressed that this is a standard procedure worldwide, given the sensitive nature of financial institutions.
“Commodity supplies will not stop immediately, as letters of credit have already been opened to import goods that have yet to arrive. I do not foresee an immediate crisis. However, if the Central Bank of Libya’s accounts remain frozen for an extended period, there will inevitably be consequences,” he added.
