Former Central Bank of Libya Board Member Imraje Ghith commented to our source on the freezing of the Central Bank’s accounts and the change in its governor, saying:
“The governor’s position is not an ordinary one. A prime minister can be dismissed without causing the kind of complications associated with dismissing or replacing the Central Bank governor. This is because we are deeply connected to global markets, institutions, and banks. We import virtually everything, while our revenues come from exporting oil to the world. For international partners, accountability, governance, and transparency in these matters are paramount.
“Every time the governor changes, international institutions may lose confidence in the Central Bank’s ability to exercise its sovereign authority over the management of funds. The governor’s signature carries sovereign authority, and they have the right to take precautions because they fear potential manipulation.
“This should not have been handled in this way. A governor who has served for less than two years is being dismissed. The governor’s position must be fully independent. If the term is five years, it should remain five years. Dismissal should not be permitted except in cases of a crime committed in flagrante delicto, because the Central Bank’s immunity and independence are extremely important.
“We warned about this and said that even a freeze could happen. A freeze is the worst-case scenario. Authorities may also examine and review all transfers entering Libya to verify their legitimacy. Such reviews take time and come at a cost. This was a decision that had not been properly considered from all angles.”
