How to Destroy a Country: attack the central bank

Libyan Dinar. image from wikipedia

The United Nations condemned a reported attack on an office of Libya’s central bank in the eastern city of Benghazi, calling for an inquiry into the incident that has complicated talks between the country’s warring parties.,,The incident at the bank, which has tried to stay out of the conflict, weakened the Libyan dinar against the dollar on the parallel market. The bank is controlling the country’s vital oil revenues and foreign currency reserves.“The United Nations Support Mission in Libya condemns the reported armed attack against the Central Bank branch in Benghazi, a sovereign symbol of the Libyan State,” it said in a statement…

A Reuters reporter could see damage to the bank building located in the city center, the scene of heavy battles for weeks between eastern government troops and Islamist fighters…Both conflict parties have been fighting for control of the oil producer and appointed separate heads for the central bank which held $109 billion in foreign reserves at the end of June, the last published figure. Experts believe the figure has fallen due to a slump in oil output.  Oil revenues are booked abroad on accounts of a state bank to which only the central bank has access. About half of the currency reserves are held in illiquid or rather exotic assets such as equity stakes from Italy to Bahrain or Chinese bonds.

Excerpt from U.N. condemns attack on Libyan central bank, demands inquiry, Reuters, Friday, 23 January 2015

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