Analysis by Region - Africa - Libya
In the past quarter, conflict risk in Libya has increased markedly. A struggle for influence over the Central Bank of Libya (CBL) precipitated a crisis in mid-August, and the CBL is now split between factions that follow the instructions of the country’s two rival governments. The faction in active control lacks access to the CBL’s hard currency deposits, with the result that letters of credit are not being issued to importers. If the crisis is not resolved soon, goods shortages are imminent.
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