Banking concerns but no immediate halt to the flow of goods
LIBYA – Economist Mohsen Derregia has said the possibility of the Central Bank of Libya’s accounts being frozen and dollar flows into them, including oil revenues, being halted is drawing the attention of international financial and regulatory institutions, given the sensitivity of procedures for changing those in charge of the monetary authority.
Powers of replacement and international review of signing authority
In exclusive comments to the economic newspaper Sada, Derregia explained that the House of Representatives has the authority to dismiss an official who answers to it if there are grounds for dismissal, and to name a replacement in agreement with the High Council of State under the political agreement in force.
He added: “But from an international point of view, there must be a review of who has now been granted authority to sign off on the Central Bank of Libya’s actions,” explaining that such reviews are standard practice worldwide given the sensitivity of financial institutions.
Earlier letters of credit limit the risk of import shortages
Derregia stressed that the flow of goods will not stop immediately, because letters of credit have been opened to import goods that have not yet arrived, which means, in his estimate, that there is no immediate crisis at present. He warned, however, of the consequences that could follow if the suspension of the Central Bank of Libya’s accounts continues for a long period.
