Libya’s Rival Central Banks Reunify After Split of Almost Decade

(Bloomberg) -- Libya’s central bank said it reunited with its breakaway rival after nine years of division, a rare step toward consolidating state institutions in the North African OPEC member battered by long-running conflict.

Most Read from Bloomberg

• Borrowers With $39 Billion in Student Loans Finally See Relief

• Musk Told Pentagon He Spoke to Putin Directly, New Yorker Says

• Quant Trader Doubles Fortune to $11 Billion as XTX Profit Surges

• S&P Joins Moody’s in Cutting US Banks Amid ‘Tough’ Climate

The announcement followed a meeting between Tripoli-based Governor Sadiq Al-Kabir and officials from the rival regulator in the eastern city of Benghazi. Representatives are now working to address the impact of the split, according to a statement Sunday from the central bank in the capital.

Read More: Reunifying Libya’s Central Bank Will Take Six Months, Kabir Says

The divergence dates back to a 2014 power struggle that saw Libya divided between a United Nations-recognized government in Tripoli and a challenger in the east. Over the following years, which saw a failed attempt by eastern fighters to seize the capital and an eventual 2020 cease-fire, Kabir’s bank remained the one that was internationally accepted.

The division impacted issues including the foreign-exchange rate and allocation of oil wealth in a country that’s home to Africa’s largest proven reserves. Kabir has previously said that reunification would finally allow the bank to consolidate monetary policy and eliminate parallel spending.

The announcement marks a rare success in bridging one of Libya’s divides and contrasts with faltering UN-backed efforts to end a political impasse. Nationwide elections slated for December 2021 were canceled and the leadership of the country is once again split between a Tripoli-based prime minister and an eastern parliament intent on replacing him.

Read More: Putin Gains in Oil-Rich Libya as US Struggles to Oust Wagner

Most Read from Bloomberg Businessweek

• Never Mind Shrinking Households, Builders Are Adding Bedrooms

• ‘Don’t You Remember Me?’ The Crypto Hell on the Other Side of a Spam Text

• GOP Presidential Hopeful Ramaswamy Sued Over Strive’s Practices

• Sam’s Club’s War Against Costco Started With $1.38 Hot Dog Combo

• The Legendary, Wildly Profitable QQQ Fund Makes No Money for Its Owner

©2023 Bloomberg L.P.