Libya factions agree to appoint central bank governor in bid to ease crisis

A bank teller looks for a customer's debit card at a bank in Libya's western coastal city of Misrata on August 25, 2024. (AFP)
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Updated 04 September 2024
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Libya factions agree to appoint central bank governor in bid to ease crisis

  • Libya’s central bank has been paralyzed by the battle for its control, leaving it unable to conduct transactions for more than a week

CAIRO: Libya’s two legislative bodies agreed on Tuesday to appoint jointly a central bank governor, potentially defusing a battle for control of the country’s oil revenue that has slashed production.
The House of Representatives based in Benghazi, in eastern Libya, and the High State Council in Tripoli in the west signed a joint statement after two days of talks hosted by the UN Support Mission in Libya.
They agreed to appoint a central bank governor and board of directors within 30 days. Libya’s central bank is the sole legal repository for Libyan oil revenue, and it pays state salaries across the country.
The two chambers also agreed to extend consultations for five days, concluding on Sept. 9.
Libya has had little peace since a 2011 NATO-backed uprising and it split in 2014 between eastern and western factions. Major warfare ended with a ceasefire in 2020 and attempts to reunify, but divisions persist.
The House of Representatives parliament and the High State Council were both recognized internationally in a 2015 political agreement, although they backed different sides for much of Libya’s conflict.
The standoff began when the head of the Presidency Council in Tripoli moved last month to oust veteran central bank Governor Sadiq Al-Kabir and replace him with a rival board.
This prompted eastern factions to declare a shutdown to all oil production, demanding Kabir’s dismissal be halted. The dispute threatened to end four years of relative stability.
Some oil output has since resumed, and oil prices dropped nearly 5 percent on Tuesday to their lowest levels in almost nine months in a sign that traders expect the latest agreement to get more oil flowing.
Libya’s central bank has been paralyzed by the battle for its control, leaving it unable to conduct transactions for more than a week. Underlying the issue is the country’s fractured political landscape of rival governing institutions with tenuous claims to legitimacy.

 


Trump warns Iran of ‘very traumatic’ outcome if no nuclear deal

Updated 12 February 2026
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Trump warns Iran of ‘very traumatic’ outcome if no nuclear deal

  • Speaking a day after he hosted Netanyahu at the White House, Trump said he hoped for a result “over the next month”

WASHINGTON: US President Donald Trump threatened Iran Thursday with “very traumatic” consequences if it fails to make a nuclear deal — but Israeli Prime Minister Benjamin Netanyahu said he was skeptical about the quality of any such agreement.
Speaking a day after he hosted Netanyahu at the White House, Trump said he hoped for a result “over the next month” from Washington’s negotiations with Tehran over its nuclear program.
“We have to make a deal, otherwise it’s going to be very traumatic, very traumatic. I don’t want that to happen, but we have to make a deal,” Trump told reporters.
“This will be very traumatic for Iran if they don’t make a deal.”
Trump — who is considering sending a second aircraft carrier to the Middle East to pressure Iran — recalled the US military strikes he ordered on Tehran’s nuclear facilities during Israel’s 12-day war with Iran in July last year.
“We’ll see if we can get a deal with them, and if we can’t, we’ll have to go to phase two. Phase two will be very tough for them,” Trump said.
Netanyahu had traveled to Washington to push Trump to take a harder line in the Iran nuclear talks, particularly on including the Islamic Republic’s arsenal of ballistic missiles.
But the Israeli and US leaders apparently remained at odds, with Trump saying after their meeting at the White House on Wednesday that he had insisted the negotiations should continue.

- ‘General skepticism’ -

Netanyahu said in Washington on Thursday before departing for Israel that Trump believed he was laying the ground for a deal.
“He believes that the conditions he is creating, combined with the fact that they surely understand they made a mistake last time when they didn’t reach an agreement, may create the conditions for achieving a good deal,” Netanyahu said, according to a video statement from his office.
But the Israeli premier added: “I will not hide from you that I expressed general skepticism regarding the quality of any agreement with Iran.”
Any deal “must include the elements that are very important from our perspective,” Netanyahu continued, listing Iran’s ballistic missile program and its support for armed groups such as the Palestinian movement Hamas, Yemen’s Houthi rebels and Hezbollah in Lebanon.
“It’s not just the nuclear issue,” he said.
Despite their differences on Iran, Trump signaled his strong personal support for Netanyahu as he criticized Israeli President Isaac Herzog for rejecting his request to pardon the prime minister on corruption charges.
“You have a president that refuses to give him a pardon. I think that man should be ashamed of himself,” Trump said on Thursday.
Trump has repeatedly hinted at potential US military action against Iran following its deadly crackdown on protests last month, even as Washington and Tehran restarted talks last week with a meeting in Oman.
The last round of talks between the two foes was cut short by Israel’s war with Iran and the US strikes.
So far, Iran has rejected expanding the new talks beyond the issue of its nuclear program. Tehran denies seeking a nuclear weapon, and has said it will not give in to “excessive demands” on the subject.