Libya's central bank has opened talks with France on possible cooperation, in one of the first diplomatic meetings held by the bank's new governor since he took office.

Central Bank of Libya Governor Fawzi Abukhzam met French Ambassador Thierry Vallat in Tripoli on Sunday, 8 November, the bank said in a statement issued on Monday. The two exchanged views on matters of mutual interest and explored opportunities for cooperation between the bank and France.

The bank's statement gave a broad account of the discussion. It did not specify any projects, agreements or follow-up meetings, and no deal was announced.

New governor, days into the job

The meeting came days after Abukhzam was sworn in as governor on 4 November before the Speaker of the House of Representatives in Benghazi. His appointment followed a vote by the eastern-based parliament on 2 November, after the resignation of former governor Naji Issa. The Libyan News Agency reported that 78 of the 90 lawmakers present backed the decision.

Abukhzam had already been carrying out the governor's duties under an interim arrangement agreed in October. On 3 November, the day before his oath, he met Presidential Council president Mohamed Al-Menfi to discuss monetary and fiscal policy, banking performance and coordination between state institutions.

Why the central bank matters

The Central Bank of Libya is one of the country's most important institutions. It manages foreign reserves and monetary policy, and it sits at the centre of the channel through which much of Libya's oil revenue enters public finance. That makes the leadership of the bank a matter of national importance in a country whose institutions remain divided between rival political centres.

In its statement on the oath-taking, the bank said the moment demanded stronger monetary and financial stability, greater confidence in the banking sector and the development of monetary policy tools, alongside closer coordination with state institutions.

Rebuilding international ties

The talks with France fit a wider effort by the bank to rebuild its international banking relationships. In October, the bank announced the resumption of banking cooperation with Germany's Commerzbank after a break of more than ten years, a move it described as a milestone in restoring international confidence in Libya's banking sector.

Libya's sovereign wealth fund, the Libyan Investment Authority, also held talks in Paris in early November with French finance officials about reinvesting frozen Libyan cash balances held in France under United Nations Security Council resolutions. The two tracks are separate, but both point to Tripoli re-engaging with Paris on financial questions.

For now, the central bank talks remain at the level of an exploratory discussion. Whether they lead to a formal arrangement will depend on what, if anything, follows the first meeting.