Libya's authorities dismissed the country's influential central bank governor, a sudden decision that is likely to escalate tensions in the already divided North African nation.

The presidential council in the capital of Tripoli, which is allied with the government of Prime Minister Abdul Hamid Dbeibah that controls western Libya, removed Governor Sadiq al-Kabir, according to a decree issued late Sunday.

In his place, the council appointed Mohamed Abdul Salam al-Shukri as the new governor for the Central Bank of Libya, an economist and former deputy governor.

Al-Kabir had led the central bank since October 2011 – the year that Libya was plunged into chaos after a NATO-backed uprising toppled longtime dictator Moammar Gadhafi.

During that time, he accumulated significant influence and power but also faced criticism from officials on both sides of the country's political divide in allocating Libya's oil money. In recent months, that criticism has turned into calls for his removal.

There was no immediate comment from al-Kabir.

Oil-rich Libya has been split between a U.N.-supported government in the capital, Tripoli, and rival authorities based in the east. Each side has been backed by different armed groups and foreign governments.

The central bank is the repository for billions of dollars annually in oil revenue as well as foreign reserves. In 2014, it splintered along the country’s political fault lines. Its internationally recognized headquarters remain in Tripoli, while an eastern branch allied with putschist Gen. Khalifa Haftar was set up in Benghazi.

However, Libya's east-based parliament and the Supreme Council of State, an advisory body based in Tripoli, called al-Kabir's removal illegitimate. The two bodies should also have a say in who is appointed to the position – a decision that shouldn't be up to the presidential council alone.

That's according to interim regulations agreed to under U.N.-backed talks meant to oversee the country's reunification.