Ousted Libyan central bank chief claims bank remains cut off from international financing

Libya’s ousted central bank governor, Sadiq al-Kabir, currently in self-imposed exile in Turkey, claims that the country’s central bank is still cut off from the international banking system.

"All international banks that we deal with, more than 30 major international institutions, have suspended all transactions," he told Reuters on Thursday. 

The Economist warned in September that if Libya continues to be excluded from the global financial system, it may face difficulties purchasing essential goods, many of which are imported, including food.

A new board set up by Tripoli to manage the central bank after Kabir’s ousting previously denied that foreign banks are not dealing with it.

The U.S. Treasury, JPMorgan and the International Monetary Fund didn’t respond to Reuters requests for comment on the accuracy of Kabir’s claims. 

Kabir was removed from his position in August by Libya’s western-backed government in Tripoli. He believes his ousting was a response to his criticism of Prime Minister Abdulhamid al-Dbeibah’s spending and alleged misdirection of oil revenues. The country’s Benghazi-based government controlled by military strongman Khalifa Haftar protested Kabir’s ouster by slashing output from its oilfields. 

Libya’s economy relies heavily on oil, which accounts for 95% of its revenue. Despite the turmoil, both factions in Libya aim to appoint a new central bank governor and board by early October, with Kabir hoping to be reinstated.