As of today, the euro is the official currency in Kosovo, which excludes the Serbian dinar from payment transactions.
This is the decision of the Central Bank of Kosovo, which the European Union called on to ensure more time for adaptation to the new way of using money and to find a solution within the dialogue between Pristina and Belgrade.
The Central Bank of Kosovo introduced the euro into payment transactions, as explained, due to the transparency of financial flows, ensuring financial stability and the fight against money laundering and counterfeiting.
The US government has called on Kosovo to reconsider the decision to suspend the dinar in payments, citing concerns that the decree will negatively affect the Serbian community, but the governor of the Central Bank in Pristina says the euro remains the only official currency and offers options for dinar transactions.
The governor of the Central Bank of Kosovo (CKB), Ahmet Ismaili, said on Thursday that in the future, only euros will be able to be sent from Serbia to Kosovo, which can be exchanged for dinars, with which Kosovo institutions want to introduce control over the circulation of dinars, which they have not had transparent insight into so far.
“Citizens can receive money through their accounts, but only in euros. It is not possible for an unlicensed institution to transport money and engage in financial activities,” Ismaili told Pristina’s RTK2.
The euro, he added, will be exchanged for other currencies, including the dinar, but only in authorized exchange offices.
“This controls all the money in circulation and it becomes transparent. The Central Bank of Kosovo does not control individuals, but there is no system anywhere in the world where unregistered institutions carry out money circulation”, said the governor of CBK.
The Central Bank of Kosovo announced earlier that from February 1, the only currency allowed in Kosovo will be the euro, thus excluding the dinar from payment transactions.
Serbia’s payment system continues to function in Kosovo even after the 1999 war in predominantly Serbian areas, and dinars are in circulation through the Serbian Treasury in trade, Serbian institutions, catering and other private service industries, Hina news agency reminds.
Ismaili explains that money from Serbia can also be paid to local governments with a majority Serbian population.
The Law on Public Finances and the Law on Local Self-Government provide for this type of assistance from Serbia, and Ismaili emphasizes that it is “transparent and secure financing”.
When asked if the new situation could be solved by registering a Serbian financial institution in Kosovo, he said that this possibility was open because there was already one licensed bank from Serbia.
“Commercial bank was licensed, and now it is in liquidation, for which we are not responsible”, emphasized Ismaili.
Official Belgrade requested the support of the European Union as a mediator in the dialogue on the normalization of relations between Serbia and Kosovo, and the EU’s special representative for dialogue Miroslav Lajčak said earlier that he hoped a solution would be reached that would not further complicate the dialogue.
Serbian President Aleksandar Vučić, reacting earlier to that decision, assessed that it represents an attempt to cancel the dialogue between Belgrade and Pristina and an attempt to expel the Serbian people from Kosovo. He expressed his belief that the international community will not allow this.
