Libya’s rival eastern and western authorities agreed under US mediation to unify public spending after over a decade of division.
The move follows years of instability after the 2011 uprising that toppled longtime ruler Muammar Gaddafi and reshaped the state.
The country remains split between a UN-recognised government in Tripoli and an eastern administration in Benghazi backed by Khalifa Haftar.
Signed by Issa Al-Arebi of Benghazi-based House of Representatives and Abdul Jalil Al-Shawish of Tripoli High Council State respectively.
The central bank said the deal marks progress toward unified fiscal policy and better management of public spending across Libya.
Despite $22 billion in oil revenues last year, Libya still faces a $9 billion foreign currency deficit, the central bank said.
The dinar was devalued nearly 15 percent earlier this year, as authorities cited lack of a unified state budget.
The central bank praised US mediation, saying the agreement could strengthen financial stability and improve coordination between rival institutions.
Libya holds Africa’s largest oil reserves, estimated at 48.4 billion barrels, producing about 1.5 million barrels per day.
Prime Minister Abdulhamid Dbeibah thanked US adviser Massad Boulos for supporting mediation that led to the agreement.
Dbeibah said the step shows promise, but real test is commitment from all sides to deliver tangible results.
