Central Bank of Libya Governor Naji Issa resigns amid economic pressure

Naji Issa has resigned as the Governor of the Central Bank of Libya (CBL), heightening financial uncertainty in the country. Issa submitted his resignation to the House of Representatives Speaker, Ageela Saleh, after serving less than two years. While Issa did not specify a reason for his departure, citing the sensitivity of the matter, the move comes amid significant economic pressures.

The Libyan dinar has weakened on the parallel market, with the US dollar reaching approximately 9.18 dinars in cash transactions. This currency depreciation threatens to increase the cost of imported food and consumer goods. Economic challenges facing the central bank include rising public-sector salaries, energy subsidies, and difficulties managing foreign exchange reserves.

Libya’s fiscal situation is complicated by political and institutional divisions. The central bank must manage foreign currency revenues from oil and gas while providing local dinars to fund government spending. Although a unified public spending agreement of approximately 190 billion dinars was announced in April 2026, debates persist regarding how state expenditures should be financed and managed amidst declining revenues and liquidity concerns.