On Monday, the Central Bank of Libya (CBL) announced a plan to end the 7-year division between the eastern and western branches of the bank in the war-torn country.
The CBL said in a statement that its Governor, Al-Siddiq Al-Kabeer and his deputy, Ali Al-Hibri met in Tunisia and agreed on a detailed plan to launch the process of uniting the Central Bank.
The two discussed the unification in accordance with the roadmap proposed by the international accounting firm Deloitte. This comes with the completion of the international financial audit review for the CBL in July.
“The division complicates access to foreign exchange, impedes monetary reform, and undermines the integrity and oversight of the commercial banks,” the UN Support Mission in Libya (UNSMIL) said.
The review seeks to create the necessary conditions and provide recommendations to unify the CBL, thereby improving public confidence, transparency, and integrity of the country’s banking sector.
Notably, UNSMIL facilitated the process that included concluding the terms of reference for the review with both CBL branches. To ensure independence and best practice, the United Nations Office of Project Services (UNOPS) managed the procurement process that resulted in the selection of Deloitte as the independent auditor.
“The unification of the CBL is no longer simply recommended but required. The division complicates access to foreign exchange, impedes monetary reform, and undermines the integrity and oversight of the commercial banks. The division, in combination with the lack of a unified budget, contributed to both banks accruing debt to finance the respective former governments,” Deloitte’s review noted.