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Author: Amira Cherni

Middle East Monitor: Mediations to Contain the Central Bank of Libya Crisis

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The “Middle East Monitor” website reported, citing informed sources, that there are mediations to contain and resolve the crisis at the Central Bank of Libya following the Presidential Council’s decision to form a new board and proceed with the dismissal of current Governor Seddiq Al-Kabeer and his deputy, Marai Al-Barassi, with the appointment of Muhammad Al-Shukri.

The site added that in September 2014, the House of Representatives voted by majority to dismiss Seddiq Al-Kabeer from his position as Central Bank Governor. In January 2018, the House of Representatives issued a decision to appoint Muhammad Al-Shukri as Central Bank Governor. However, on Friday, the House Presidency reversed its decision, suspending Al-Shukri’s appointment due to the expiration of his mandate and his failure to assume his duties, reinstating Sadiq Al-Kabeer as Governor.

The site also mentioned that Parliament Speaker Aguila Saleh warned on Monday that the Presidential Council’s move to interfere with the Central Bank or appoint a new governor could lead to the freezing of Libyan assets abroad and the collapse of the local currency.

It is not within the Presidential Council’s powers to form the Central Bank’s board, but according to observers, it is attempting to exploit a loophole by relying on the House of Representatives’ 2018 decision to appoint Al-Shukri.

According to the site, Prime Minister Abdul Hamid Dbeibeh of the Government of National Unity pressured for Al-Kabeer’s dismissal, but international forces, led by the United States, warned against this move in a show of support for the current governor.

After nine years of division, the Central Bank announced on August 20, 2023, its return as a unified sovereign institution, emphasizing its commitment to addressing the effects of its division.

The site continued, stating that the existence of two governments in the east and west has deepened the political crisis, with Libyans hoping for a resolution through long-awaited presidential and parliamentary elections, which have been delayed due to disagreements over electoral laws and the executive authority that will oversee them.

Exclusive: After Prosecutor’s Notification, Central Bank Announces Lifting of Freeze on Al-Sahl Holding Group Accounts

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Our source has exclusively obtained a directive from the Central Bank of Libya lifting the freeze on the accounts and balances of Al-Sahl Holding Group following the settlement of their financial obligations. The group deposited 255 million dinars out of a total of 309 million dinars.

The Public Prosecution had issued a notice to lift the freeze on the accounts of the group’s affiliated companies, which welcomed this step. The group confirmed the early settlement of all its financial obligations and refuted any related publications.

Italian political expert Daniele Rovinetti

Special Report: Rovinetti to Sada: “Currency Printing in Eastern Libya Serves Moscow’s Interests” – Here are the Details

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Italian strategic expert Daniele Rovinetti stated to our source on Sunday that the printing of the Libyan dinar by a Russian company is part of external activities and is likely to lead to instability.

Rovinetti confirmed that, specifically, the activity covered by Moscow affects the Libyan government in eastern Libya, enabling an unrecognized executive system that serves as a political base for the interests of military leader Khalifa Haftar.

This, in turn, protects Russian interests, particularly safeguarded by Haftar, who views Libya as a strategic hub between the Mediterranean and Africa.

Rovinetti further noted that while we still need to understand the dynamics and involved actors, we can imagine that Russia benefits from maintaining chaos, which is why it is taking action.

He added that the illegal printing of the dinar serves to finance Moscow’s broader geopolitical strategic interests.

Exclusive: Al-Touibi Clarifies the Supreme Court Administrative Division’s Ruling on Canceling the Foreign Currency Surcharge

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In a statement to our source, lawyer Thuria Al-Touibi discussed the Supreme Court’s Administrative Division ruling to cancel the surcharge on foreign currency exchange rates.

She explained that the Governor of the Central Bank of Libya and the Speaker of the House of Representatives, Aguila Saleh, filed an appeal after the ruling was announced, requesting a suspension of the decision’s implementation. The Supreme Court ruled against their request to halt the decision.

Al-Touibi elaborated that the governor and the speaker sought to suspend the implementation of the administrative court’s urgent ruling and to continue collecting the tax, but the Supreme Court rejected their request.

She added that some plaintiffs had filed cases in ordinary courts, which ruled on the matter and gave them the right to appeal. Meanwhile, some, including herself, had submitted an administrative appeal, which led to a suspension of the implementation of the urgent ruling until a final decision is made on the issue.

Al-Harshawi Explains to Sada the Reasons Behind the Weak Libyan Dinar

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Jalal Al-Harshawi, a Libyan affairs expert at the Royal United Services Institute, explained to our source on Wednesday that there are several reasons behind the weakness of the Libyan dinar, and that parallel printing of dinars is not the main cause.

Al-Harshawi confirmed that the primary reason for the dinar’s weakness is the large amount of barter transactions conducted by the National Oil Corporation.

Reuters: Unofficial Banknotes Exchanged for Dollars Contributed to the Decline of the Dinar in Eastern Libya

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Reuters reported today, citing three informed sources, that unofficial Libyan banknotes exchanged for dollars have contributed to the decline in the value of the dinar. According to the sources, some of these banknotes were printed by Russia and shipped to eastern Libya this year, while others were illicitly printed within Libya.

The sources also revealed that the funds from these banknotes were used for public works in the east following floods and were also financing Russian mercenaries. The Central Bank of Libya in Tripoli has described the new banknotes as counterfeit, but they are being exchanged for hard currency on the black market or through local banks, according to a government source in eastern Libya, a Libyan banking source, and a diplomatic source.

The investigative group “The Sentry,” which focuses on corruption and war crimes, disclosed Russia’s role in flooding Libya with new banknotes. Despite this, the Central Bank of Libya in Tripoli and in the east did not respond to Reuters’ requests for comment, nor did Khalifa Haftar. Additionally, the Russian printing company Goznak did not respond to a written request for comment.

Reuters further noted that Russia had supplied several billion dinars to eastern authorities from 2016 until the ceasefire in 2020, aiding Khalifa Haftar and the government he supported in Benghazi. It was previously unknown whether Russia had supplied new banknotes this year. The imported dinars between 2016 and 2020 were officially issued by the Central Bank of Libya’s eastern branch and bore the signature of its governor, Ali al-Hibri. Their issuance exacerbated economic divisions within Libya due to differing exchange rates across various regions, according to the agency.

Dangote Refinery in Nigeria in Talks with Libya to Secure Oil

Dangote Refinery in Nigeria in Talks with Libya to Secure Oil

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The “THE TIMES OF INDIA” newspaper reported, citing a senior executive at the Dangote Refinery in Nigeria, that they are in talks with Libya to secure crude oil for the refinery, which has a capacity of 650,000 barrels per day. The refinery will also seek to obtain oil from Angola as it strives to overcome local supply issues.

The newspaper added that the $20 billion refinery, built by Africa’s richest man, Dangote, on the outskirts of Lagos, is the largest in Africa. It aims to end Nigeria’s reliance on imported fuel due to inadequate refining capacity.

The newspaper noted that since Dangote Refinery began operations in January, it has been unable to secure adequate crude supplies in Nigeria. Despite being Africa’s largest oil producer, Nigeria suffers from theft, pipeline vandalism, and low investment.

Devakumar Edwin, the executive director of Dangote Refinery, said, “We are talking with Libya regarding crude imports, and we will also talk with Angola and some other African countries.”

According to the newspaper, the minister declined to provide details about the talks.

He continued by saying that international traders and oil companies are among the biggest buyers of natural gas produced by Dangote, much of which is exported.