Central Bank of Libya
Libya's monetary authority, responsible for currency issuance, monetary stability, foreign-exchange management, and oversight of the banking system.
Last updated August 22, 2026
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Overview
The Central Bank of Libya (CBL) is Libya's monetary authority and an autonomous corporate institution. Its statutory purpose is to preserve monetary stability and support sustained economic growth in line with the country's general economic policy. The bank performs the core functions normally associated with a national central bank: it issues and manages the Libyan dinar, holds and administers foreign-exchange reserves, conducts monetary and foreign-exchange policy, supervises commercial banks and other financial institutions, and supports the operation of the national payments system. The institution was created by Act No. 30 of 1955 and began operating on 1 April 1956 as the National Bank of Libya. It replaced the Libyan Currency Commission, an interim monetary body established in 1951 under international supervision during the early years of the Libyan state. The bank was initially housed in a former savings-bank building in Tripoli, a structure designed by Armando Brasini in 1921 and completed in the early 1930s. Its name changed to the Bank of Libya in 1963 and then to the Central Bank of Libya after the 1969 coup. The CBL is headquartered in Tripoli and has branches in Benghazi, Sabha, and Sirte. These branches extend central-bank services to commercial banks and government departments located away from the capital. Its responsibilities therefore span both monetary administration and institutional infrastructure, including relationships with banks, public-sector entities, and the country's wider financial system. The bank's operations have been heavily affected by Libya's political fragmentation. Its administration split during the first civil war in 2011 and again from September 2014 during the second civil war. Rival political authorities operated competing central-bank structures, creating disputes over monetary authority, public finances, foreign assets, and the management of oil revenues. In December 2021, Tripoli-based governor Sadiq al-Kabir and Bayda-based governor Ali Al-Hibri met in Tunisia and agreed to begin reunification. In January 2022, they signed a four-stage reunification plan, with Deloitte appointed to oversee the process. The bank announced in August 2023 that reunification had been completed under al-Kabir and his deputy in the east, Maree Raheel. The reunification remained politically vulnerable. In August 2024, armed personnel associated with Libya's Tripoli-based Government of National Unity moved to remove al-Kabir from office. The government accused him of mishandling oil revenues, while al-Kabir said he had been forced to leave Libya because of threats and argued that the attempted replacement breached United Nations-mediated arrangements governing the bank. The episode was followed by a response from the Benghazi-based Government of National Stability, which announced the closure of oil fields, facilities, and terminals. These events illustrate the CBL's unusual position: it is formally a national monetary institution, but its leadership and control are closely entangled with Libya's divided political and security environment.
History
The Central Bank of Libya emerged from the monetary arrangements created during the formation of the modern Libyan state. In 1951, the Libyan Currency Commission was established under the supervision of the United Nations and other supervising states. Its purpose was to provide a monetary framework for a newly independent country whose economy and public institutions were still weak. The commission served as an interim institution until Libya created a permanent central bank. Act No. 30 of 1955 established the National Bank of Libya. The institution began operations on 1 April 1956 and became responsible for the country's monetary administration. Its original headquarters was the former Savings Bank building in Tripoli, known in Italian as the Cassa di Risparmio della Tripolitania. The building had been designed by Armando Brasini in 1921 and completed during the early 1930s. The bank's establishment marked the transfer from an internationally supervised currency commission to a domestic monetary authority. The institution underwent two formal name changes. Act No. 4 of 1963 changed its name to the Bank of Libya. After the 1969 coup d'état, it received its current name, the Central Bank of Libya. Over time, its mandate developed around the standard functions of a central bank: maintaining monetary stability, issuing the national currency, managing foreign-exchange reserves, conducting monetary policy, supervising financial institutions, and supporting the operation of payment and banking systems. The bank's statutory objectives also include promoting sustained economic growth in accordance with the general economic policy of the state. The CBL maintains its headquarters in Tripoli and branches in Benghazi, Sabha, and Sirte. The branch network is intended to make central-bank services available to commercial banks and public departments located far from the capital. This geographic structure became especially important as Libya's political system fragmented and rival authorities exercised control over different parts of the country. The institution's administration split during the first Libyan civil war in 2011, when Governor Farhat Bengdara resigned and defected to the rebel side. The split reappeared from September 2014 during the second civil war, when rival political authorities supported competing central-bank administrations. The resulting division affected the bank's leadership, monetary governance, relations with commercial banks, and the handling of public resources and foreign assets. The CBL consequently became not only a monetary institution but also a focal point of Libya's wider struggle over national legitimacy and control of state revenues. A formal reunification effort began in late 2021. On 6 December, Tripoli-based governor Sadiq al-Kabir met Bayda-based governor Ali Al-Hibri in Tunisia, and the two agreed to begin rebuilding a unified institution. On 20 January 2022, they signed a four-stage reunification plan and selected Deloitte to oversee the process. On 20 August 2023, the bank announced that reunification had been completed under al-Kabir and eastern deputy governor Maree Raheel. The settlement proved fragile. On 30 August 2024, armed personnel associated with the Tripoli-based Government of National Unity attempted to remove al-Kabir. Government officials accused the governor of mishandling oil revenues, while al-Kabir characterized the move as unlawful and said he had been forced to leave Libya because of threats. He also argued that the action violated United Nations-negotiated arrangements concerning control of the bank. The Benghazi-based Government of National Stability responded by announcing the closure of oil fields, facilities, and terminals. The episode demonstrated that the CBL's effectiveness depends not only on its formal legal autonomy but also on political agreement over its leadership and control of national revenues.
- 2024
Governor removal attempt creates renewed crisis
[1]An armed attempt to remove Sadiq al-Kabir from office reopened the dispute over the bank's leadership and control of oil revenues.
- 2023
Reunification announced
[1]The CBL announced that reunification had been completed under the Tripoli-based governor and an eastern deputy.
- 2022
Four-stage reunification plan signed
[1]The rival governors signed a reunification agreement and appointed Deloitte to supervise implementation.
- 2021
Rival governors agree to pursue reunification
[1]Sadiq al-Kabir and Ali Al-Hibri met in Tunisia and agreed to begin reunifying the divided institution.
- 2014
Second administrative division begins
[1]From September 2014, the CBL again operated through rival administrations as Libya's second civil war divided political control.
- 2011
First major administrative split
[1]The bank's administration split during the first civil war after Governor Farhat Bengdara resigned and joined the rebel side.
- 1969
Adopts the name Central Bank of Libya
[1]Following the 1969 coup d'état, the institution adopted its current name.
- 1963
Renamed Bank of Libya
[1]Act No. 4 of 1963 changed the institution's name to the Bank of Libya.
- 1956
Operations begin
[1]The National Bank of Libya began operations on 1 April 1956.
- 1955
National Bank of Libya established
[1]Act No. 30 of 1955 created the National Bank of Libya, the institutional predecessor of the modern central bank.
Products and positioning
Libya's statutory monetary authority and central institution for currency, monetary stability, foreign-exchange reserves, banking supervision, and financial-system administration.
Currency
Libyan dinar
The CBL issues and manages Libya's national currency, the Libyan dinar. Currency administration is one of the institution's foundational responsibilities and is closely connected to monetary stability, banking liquidity, and foreign-exchange policy.
Central-bank policy
Monetary policy
The bank's statutory mandate includes maintaining monetary stability and supporting sustained economic growth in accordance with national economic policy. Its monetary-policy role covers the management of monetary conditions and the wider stability of Libya's financial system.
Reserve management
Foreign-exchange and reserve management
The CBL administers Libya's foreign-exchange reserves and participates in the country's foreign-exchange framework. This function has been politically significant because control over external assets and oil-related revenues has been contested by rival Libyan authorities.
Financial regulation
Banking supervision
The CBL supervises commercial banks and other financial institutions operating within Libya. Through this function it provides regulatory oversight of the banking sector and helps maintain the integrity and stability of the domestic financial system.
Financial infrastructure
Payment-system services
As Libya's central monetary institution, the CBL supports the operation of national payment infrastructure and provides central-bank services to commercial banks and public departments. Its branch network in Benghazi, Sabha, and Sirte extends access beyond Tripoli.
Controversies
2024
Dispute over the attempted removal of Governor Sadiq al-Kabir
In August 2024, armed personnel associated with the Tripoli-based Government of National Unity attempted to remove Governor Sadiq al-Kabir. The government alleged that he had mishandled oil revenues. Al-Kabir rejected the action as illegal, said that threats had forced him to leave Libya, and argued that the move breached United Nations-negotiated arrangements governing the bank. The dispute prompted the eastern-based government to announce an oil-sector shutdown.
Brand decisions
2024
Attempted replacement of the governorOtherBackground
The Tripoli-based Government of National Unity accused Governor Sadiq al-Kabir of mishandling oil revenues amid continuing rivalry between Libya's political authorities.
Action taken
Armed personnel were sent to remove al-Kabir from his office. Al-Kabir said the action was unlawful and left Libya after receiving threats.
Aftermath
The Benghazi-based Government of National Stability responded by announcing the closure of oil fields, facilities, and terminals, linking the central-bank dispute to Libya's oil and public-finance system.
2023
Announcement of institutional reunificationStrategyBackground
The CBL had been divided between Tripoli- and Bayda-based administrations since the country's renewed political fragmentation.
Action taken
The bank announced that the reunification process had been completed under Sadiq al-Kabir and eastern deputy governor Maree Raheel.
Aftermath
The announcement temporarily represented a return to a single institutional framework, but the bank's political position remained contested.
2022
Adoption of a four-stage reunification planStrategyBackground
The CBL had operated through rival administrations following Libya's political and civil-war divisions. Tripoli-based governor Sadiq al-Kabir and Bayda-based governor Ali Al-Hibri sought to restore a unified institution.
Action taken
The two governors signed a four-stage plan on 20 January 2022 and appointed Deloitte to oversee the reunification process.
Aftermath
The bank announced in August 2023 that reunification had been completed, although a new leadership crisis emerged in 2024.
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