Egypt Daily News – Today’s declaration of a state of “force majeure” by the Libyan government appointed by the Parliament in Benghazi halting oil production and exports is a significant development in the ongoing political turmoil within the country.
This decision follows the controversial appointment of Muhammad Al-Shukri as the new governor of the Central Bank of Libya by the Presidential Council, which was quickly rejected by both the House of Representatives and the Supreme Council of State.
The tensions surrounding the Central Bank governance reflect the broader divisions in Libya, where two rival governments are vying for authority: one in the east, backed by the parliament and Haftar’s military power and the other in the west, based in Tripoli, who are the Muslim Brotherhood and recognized internationally.
Saleh’s warning about potential disruptions to oil facilities and revenue transfers highlights the precarious nature of Libya’s economy, which heavily relies on oil exports.
The situation is further complicated by ongoing negotiations and the absence of widespread stability since the fall of Gaddafi in 2011.
Al-Shukri’s condition for accepting the governorship—gaining support from the competing legislative bodies—adds another layer of uncertainty, particularly in light of the recent meeting of the new Central Bank Board, which took place without the new governor.
As Libya navigates this political crisis, the impact on its oil production and revenues—which are vital for its economy—remains a major concern, underscoring the interconnection between political stability and economic viability in the country.
