UNSMIL warns against forceful CBL leadership change
The UN mission stresses operational independence and integrity of the Central Bank of Libya are essential for economic stability.
The United Nations Support Mission in Libya (UNSMIL) stated today that it notes developments regarding the House of Representatives Presidency's decision on the Central Bank of Libya (CBL) leadership. This follows the forceful installation yesterday of Fawzi Abu Khazam as a new interim CBL Governor.
UNSMIL emphasized that the CBL's operational independence and integrity are essential to protect public resources, maintain economic stability, and ensure credibility with international financial partners. Any leadership changes must be driven by a commitment to improved governance and oversight to maintain confidence in the management of monetary policy and reserves.
The mission warned that continued pressure on the CBL to finance escalating public expenditure is unsustainable and could intensify exchange rate pressures, fuel inflation, and deplete reserves, potentially inflicting increased economic hardship and social unrest. UNSMIL urged all stakeholders to follow Libyan legal procedures to protect the CBL's credibility.
Why it mattersUNSMIL warns that forceful changes at the Central Bank of Libya could lead to economic hardship and social unrest for the Libyan people.