Radio France reported today, Wednesday, that American, British, and European banks remain hesitant to deal with the Central Bank of Libya. These banks are not “stupid”; they are well aware that the interim governor was appointed unilaterally through a coup and violence.
Jalel Al-Harchaoui, a researcher at the Royal United Services Institute in London specializing in Libyan affairs, stated that what Dbeibeh presents as the interim governor of the Central Bank is not truly the case. The interim governor has control over the Libyan dinar systems but lacks access to the more critical assets, namely dollars, which belong to the Libyan people.
He continued: “Instruments like letters of credit, such as Libyan reserves abroad, are financial tools that this new governor cannot use. There are concerns about a very short-term shortage, and no one can predict how Libya will import essential goods in October.”
Paris-based international law attorney Majed Boudin stated that imports into Libya are completely banned, leading to a market shortage unless the international community acts quickly to resolve the issue.
He emphasized the importance of reorganizing resources from oil fields, which pass through the National Oil Corporation and are then deposited into the Central Bank to fund the economy and pay salaries.
According to Boudin, this destabilization benefits certain countries, such as Russia, which is a major beneficiary of smuggled Libyan oil, as well as China and Iran, which present themselves as alternatives in the parallel market in case of shortages.
The attorney added: “Consumer products will be replaced through these unexpected gains from oil smuggling with other products. For example, we could replace suppliers of this or that product from Europe with Russian, Chinese, or even Turkish suppliers. This is a geopolitical issue that needs to be resolved, especially since oil production, Libya’s primary source of income, is halted.”
