Central Bank of Libya’s Governor sets three conditions for withdrawing resignation

A senior source at the Central Bank of Libya (CBL) said Governor Naji Issa has set three main conditions for withdrawing the resignation he submitted to the House of Representatives and the High Council of State on August 10, as the country faces mounting economic pressures, most notably the depreciation of the Libyan dinar and cash shortages.

The source said the first condition is to accelerate the implementation of the unified spending agreement signed by the House of Representatives and the High Council of State in April, after progress on its provisions slowed in recent months. The agreement aims to unify mechanisms for managing public spending and allocating resources, reduce duplication in government expenditure, and cover salaries, development spending, subsidies, and allocations to the National Oil Corporation.

The second condition is to halt salary increases approved by government bodies, which the governor believes exceed the capacity of public revenues and place additional pressure on state finances.

The third condition involves adopting trade policy measures aimed at protecting state resources and reserves and combating the smuggling of goods and fuel. Such measures are intended to ease pressure on foreign currency reserves and support economic stability.

The developments come amid political efforts to persuade Issa to remain in office. Presidential Council’s Chairman Mohamed Menfi rejected his resignation and expressed support for the independence and stability of the Central Bank. The House of Representatives’ Planning, Finance and General Budget Committee also rejected the resignation and called on Issa to continue performing his duties.

High Council of State President Mohamed Takala and his deputies, Naji Mukhtar and Omar Boushah, also rejected the governor’s resignation, stressing the need to ensure the Central Bank continues functioning normally and maintains its professional and institutional independence away from political disputes.

The developments come as Libya continues to face financial and economic challenges, amid calls to rationalize public spending, curb waste and corruption, and safeguard public funds. A proposal has also been put forward to establish a joint technical committee between the House of Representatives and the High Council of State, in coordination with the Central Bank, to prepare and implement economic and financial reforms.