Bad News from Libya: Political Tensions and Violence on the Rise
The situation in Libya continues to deteriorate, with a series of worrying events unfolding in recent days. Following the resurgence of violence and the risk of new clashes between rival militias, political tensions are destabilizing the country's institutions. Since the overthrow of Muammar Gaddafi in 2011, Libya, which has the largest oil reserves in Africa, has been plunged into chaos.
The events have been rapid-fire in recent days. First, the Central Bank of Libya (CBL) announced that it had suspended its operations after the director of the information technology department was kidnapped from his home by an unknown party. The institution stated that it would not resume its activities until the employee was released and back at work.
Meanwhile, the Tripoli government did not hesitate to dismiss the powerful governor of the bank, Seddik al-Kabir, who has been in place since 2011. However, al-Kabir, backed by his board of directors, defied the Presidential Council's order yesterday, paving the way for a confrontation that could exacerbate the already existing political turmoil. As the sole recognized custodian of billions of dollars in oil revenues, the regulator is vital for the country's normal functioning. In a statement released on Tuesday, the CBL reassured regional and international parties that it was continuing to operate as usual, along with the banking sector.
The impact of this disorder is directly felt in Tunisia, which has seen its exports to its neighbor decline significantly in the first half of 2024, from 1,257.7 MTND to 1,008.4 MTND over the same period in 2023. This trend is likely to continue, adding a new layer of difficulties for Tunisian businesses that rely on this outlet to support their exports. Ultimately, everything that happens in Libya is immediately reflected in Tunisia.
