The Economist article said that banks have refused to deal with the Central Bank of Libya until it reaches a decision on who runs it, on the advice of the US Treasury.
The article saw that Libya is witnessing dangerous transformations that could lead to its isolation from the global financial system, threatening Tripoli’s ability to purchase basic goods, including food, which it imports in large quantities.
Haftar thrives in chaos
The Economist article pointed out that Khalifa Haftar has emerged in this vacuum, more powerful than ever, as he controls 80% of Libya’s oil fields from his stronghold in Benghazi, giving him enormous influence over the national wealth.
The report also noted that Haftar could dominate spending as well as revenues, due to his control over oil ports and fields, especially with the nomination of his ally, Deputy Governor of the Central Bank, Marai Al-Barassi, to assume the presidency of the Central Bank.
Haftar strengthens his position
The article accused Haftar of bolstering his war chest by turning Libya’s Mediterranean ports into smuggling hubs, noting that “warlords in western Libya” are now inclined to bypass Dbeibah and deal directly with him.
Russia strongly supports Haftar
Russia strongly supports Haftar, according to the article, and sees him as a gateway to a seaport on the Mediterranean, where Haftar has already allowed the Wagner Company to access the African Sahel region.
Diplomatic shift towards Haftar
The article said that Western diplomacy and Turkish companies, which once spurned Haftar, are now turning to Benghazi to negotiate with him, and the United States is said to have become more lenient toward him, with the commander of the US Africa Command holding a meeting with Haftar in Benghazi last month.
The article concluded that the center of power in Libya may gradually shift from Tripoli to Benghazi, greatly enhancing Haftar’s influence.
Source: The Economist.
2024-09-09 21:07:28