Libyan rivals agree to appoint new central bank governor

Libya’s rival factions agreed to appoint a new central bank governor after the former chief left the country under pressure from militias.

The Libyan infighting between the West and East governments spilled over to the Central Bank last month forcing suspension of its activity and jeopardizing the country’s monetary regulator.

The House of Representatives based in Benghazi, in eastern Libya, and the High State Council in Tripoli in the west signed a joint statement following two days of talks hosted by the U.N. Support Mission in Libya, Reuters reported.

The central bank is the sole repository of oil sales in the war-torn country, where rival governments in the east and the west vie for control of the country’s institutions.

The standoff began when the head of the Presidency Council in Tripoli moved last month to oust veteran central bank Governor Sadiq al-Kabir and replace him with a rival board.

This prompted eastern factions to declare a shutdown to all oil production, demanding Kabir’s dismissal be halted. The dispute threatened to end four years of relative stability.