The U.S. State Department’s Bureau of Near Eastern Affairs has warned that unilateral actions could lead to a temporary halt in financial transactions with the Central Bank of Libya until there is greater clarity regarding the legitimate governance of the institution.

The State Department explained that, after more than a week of confusion about the leadership of the Central Bank, Libyan stakeholders need to take steps to preserve the bank’s credibility and find a solution that does not harm its reputation or its ties with the international financial system.

The State Department noted that the recent uncertainty stemming from unilateral actions has led U.S. and international banks to reevaluate their relationships with the Central Bank of Libya.

It expressed concern that further disruptions with international correspondent banks could damage the Libyan economy and the well-being of Libyan families.

The State Department concluded by reiterating the UN Security Council’s call on August 28 for Libyan stakeholders to urgently work together to find a political solution that restores effective leadership and credibility to the Central Bank of Libya, ensures transparency and accountability, and enables the bank to fulfill its mandate to support the economic livelihoods of all Libyans.