Libya greenlights its inaugural consolidated budget in over a decade following American involvement

In a significant breakthrough, Libya's eastern and western legislative bodies have inked a US-brokered deal to unify public spending, marking the first time in over a decade that the divided country has achieved such an agreement, according to the central bank's statement on Saturday.

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The move comes as Libya struggles to recover from the turmoil that followed the 2011 Arab Spring uprising, which ousted longtime ruler Muammar Gaddafi and left the country split between a UN-recognised government in Tripoli, led by Prime Minister Abdulhamid Dbeibah, and an eastern administration in Benghazi backed by military leader Khalifa Haftar.

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The central bank hailed the agreement as a major step forward, stating that it reflects "real progress toward unifying fiscal policy and strengthening the good management of public spending", and noting that it marks "the first consensus on unified spending across Libya in over 13 years".

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The landmark agreement was signed by Issa Al-Arebi, representing the Benghazi-based House of Representatives, and Abdul Jalil Al-Shawish, representing the High Council of State in Tripoli, in a move that is expected to have far-reaching implications for the country's economy.

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Despite generating a substantial $22 billion in oil revenues last year, a significant increase of over 15 percent compared to the previous year, Libya is facing a foreign currency deficit of $9 billion, according to the central bank's estimates.

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In a bid to address the country's economic woes, the central bank devalued the dinar by nearly 15 percent last January, citing the lack of a unified state budget as one of the key issues, in its second such move in less than a year.

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The central bank believes that the new agreement will bolster financial stability in the country, and has commended the "positive role of the United States in supporting mediation efforts" between the two sides, which has helped to facilitate the deal.

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Libya boasts Africa's largest oil reserves, with around 48.4 billion barrels, and is currently producing approximately 1.5 million barrels per day, with plans to increase output to two million barrels per day.

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Prime Minister Abdulhamid Dbeibah has expressed his gratitude to Massad Boulos, Trump's senior adviser on Arab and African affairs, for "supporting the mediation efforts that led to this agreement", in a statement that highlighted the importance of international support in achieving the deal.

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Dbeibah has also cautioned that the true test of the agreement lies in its implementation, stating that "this is a step that carries promising signs, but the true test remains the serious commitment of all parties, so that it translates into tangible results for citizens in their daily lives".