Libya's powerful central bank chief is fired as country's deep divisions persist

CAIRO — One of Libya's feuding authorities has unilaterally fired the country's powerful central bank chief in an abrupt move that is likely to further fuel tensions in the divided North African country.

The Presidential Council in the capital Tripoli, allied with the government of Prime Minister Abdul Hamid Dbeibah that controls western Libya, has deposed Governor Sadiq al-Kabir, according to a decree issued late Sunday.

In his place, the Council appointed economist and former deputy governor Mohamed Abdul Salam al-Shukri as the new governor of the Libyan Central Bank.

Al-Kabir had headed the central bank since October 2011, the year Libya plunged into chaos after a NATO-backed uprising toppled longtime dictator Muammar Gaddafi.

During this time he gained considerable influence and power, but was also criticized by politicians on both sides for the distribution of Libyan oil money. In recent months, this criticism has culminated in calls for his removal.

There was no immediate comment from al-Kabir.

Oil-rich Libya is divided between a UN-backed government in the capital Tripoli and rival governments in the east, each side backed by different armed groups and foreign governments.

The central bank manages billions of dollars in oil revenues and foreign exchange reserves each year. In 2014, it split along the country's political fault lines. Its internationally recognized headquarters remains in Tripoli, while an eastern branch has been set up in Benghazi, allied with military commander Khalifa Hifter.

However, the parliament based in eastern Libya and the Supreme Council of State, an advisory body based in Tripoli, described al-Kabir's removal as illegal. The two bodies should also have a say in the appointment of the president – a decision that should not be the sole responsibility of the Presidential Council.

This is evident from the transitional arrangements agreed in the context of the UN-backed talks to oversee the country's reunification.