There are growing concerns about the central bank crisis, including global financial institutions, the British Foreign Office Minister for the Middle East said.
The British Minister added today in a statement that the recent measures severely complicate Libya’s relations with international banks.
The Minister urged Libyan stakeholders to quickly agree to ensure effective and transparent leadership of the Central Bank.
In a related context, the US State Department’s Bureau of Near Eastern Affairs called on “Libyan actors” to take steps to preserve the credibility of the Central Bank of Libya and find a solution that does not harm its reputation and engagement with the international financial system.
The US State Department warned that the uncertainty caused by unilateral measures has, in some cases, led to the suspension of financial transactions with Libya, noting that US and international banks are re-evaluating their relations with the Central Bank.
The Foreign Ministry renewed its call to Libyan actors to work together and urgently with the UN mission to find a political solution that restores competent and credible leadership to the Central Bank of Libya.
The Foreign Ministry considered that resolving the crisis ensures transparency and accountability for the assets of the Central Bank of Libya and enables the Central Bank of Libya to fulfill its mandate to support the livelihoods of all Libyans.
The Presidential Council had previously issued a decision that sparked widespread controversy, putting into effect the House of Representatives’ decision to appoint Mohamed El-Shokry as governor of the Central Bank and form a new board of directors.
In return, the Libyan Ministry of Foreign Affairs welcomed the statement issued by the Department of Near Eastern Affairs of the US State Department regarding developments in the situation related to the Central Bank of Libya, stressing that the US position reflects its commitment to supporting financial stability and enhancing transparency in Libyan financial institutions.
The Foreign Ministry stated that this position is a positive step towards unifying and reforming the Central Bank, stressing the need for cooperation with international partners to achieve this.
The statement indicated that Libya is fully aware of the increasing need to audit financial transactions during the transitional stages of monetary institutions, considering these measures necessary to ensure transparency and accountability.
The Libyan Foreign Ministry stressed the importance of the new Central Bank Board of Directors assuming its duties smoothly and starting to activate the various systems, expressing its happiness with the positive interaction of the new administration with the international banking system, “after nine years of the absence of governance and individual work.”
The statement explained that this step represents an important development in the process of financial and administrative reform in Libya, expressing its confidence in the United States’ support for achieving stability and sustainable growth in the country.
The Foreign Ministry statement renewed Libya’s commitment to respecting its sovereignty and continued confidence in the US dollar and American institutions, stressing the importance of strengthening bilateral cooperation with the United States in light of the current challenges, tensions and struggle for influence in Africa.
Source: UK Ministry of Foreign Affairs + Libyan and US Foreign Ministries
2024-09-02 20:40:35