In a significant step toward resolving the ongoing political and economic turmoil, Libya's two legislative bodies, the House of Representatives and the High State Council, have agreed to jointly appoint a new central bank governor.
The agreement, signed on Tuesday, calls for the appointment of a governor and board of directors within the next 30 days.
The central bank, the sole custodian of Libya's oil revenue and responsible for paying state salaries, has been paralyzed by the ongoing dispute.
The conflict began when the head of the Presidency Council in Tripoli attempted to remove the veteran central bank governor Sadiq al-Kabir and install a rival board. In response, eastern factions shut down oil production, demanding the reversal of Kabir's dismissal.
While some oil production has since resumed, the recent agreement is expected to significantly boost output, with oil prices dropping nearly 5% on Tuesday, their lowest level in almost nine months, according to media reports.
The agreement also includes a five-day extension of consultations, ending on September 9. This additional dialogue period allows for further discussions on key issues, including the selection of the new governor and board members.