Serbian dinar still exploited in Kosovo

In Article 11 of the Kosovo Constitution, a single currency is said to be used in the Republic of Kosovo as a valuable means, while with the Law for the Central Bank of Kosovo(BQK) it is also said that according to the request, the Central Bank will exchange euro bills and coins.

BEC officials claim that Kosovo has adopted the euro as official currency.

Financial expert Milazizim Abazi claims that unfortunately in Kosovo, only the euro is being used, as well as the dinar across Serb enclaves as a means of domestic payment, even though it is anti-legal and contrary to the Constitution of Kosovo, as well as contrary to the law for the Central Bank, which determines the Central Bank's duties to maintain secure and sustainable payment systems.

This also represents violations of state sovereignty, because the euro in Article 11 designated as Kosovo currency, any use of any other currency within the Kosovo market as a payment tool represents violations of the Constitution and its sovereignty. Therefore, we appeal to the Central Bank to strictly take measures and not allow the use of any other currency in Kosovo's internal market. As allowed, then Albanians will start using the lek, Turks the Turkish lira, Bosniaks brand Bosniaks and thus disrupt Kosovo's market and its sovereignty”, Abazi says.

It also states that the Ministry of Trade and Industry (MTI) with its Inspectorate must inspect stores which use the dinar and take measures against them.

The deputy chairman of the Kosovo's Afarism Oda Board(OAK), Arsim Selmonmusaj, says that the commercial bank, “Banka” north of Mitrovica, enables the release of dinar currency for citizens of this part and on the entire territory of Kosovo, where even some businesses work with this currency.

“The activities of businesses operating in the north and in all enclaves, there is a tax evasion that is unmanageable from the state institutions of the Republic of Kosovo, where we can say it is challenging all institutions, Government and Central Bank, given that even some financial banks that are in the north, Gracanica and some other cities, where they also work with the currency of Serbia<1>, Selmonusaj claims.

Economics Professor Muhamet Mustafa claims these phenomena are the gaps in control of the territory and in law enforcement, and one of them is the dinar currency.

Former deputet Mustafa says state institutions should toughen control in those parts where the payments are made with dinars, but since there is no control in much of what is most difficult is to control the money.

“It is absurd, if it has a commercial bank that works with dinar and is not licensed by the CEC and violates the laws, the central bank is guilty along with Government, (if it is licensed), has responsibility to oversee”, he said.

While Kosovo Central Bank spokesman(BQK), Kufi Ahmeti says Kosovo has adopted the euro as official currency. However, according to him, commercial banks operating in Kosovo may also keep other foreign currency, but according to the BEC's regulation of the risk of foreign currency activity, the CEC has specified limiting bank exposure to risk to currency exchange activity.

For more, no bank should have an open net foreign currency position, in any foreign currency that exceeds 15% of its first-class capital, where banks are in compliance with the demand. Furthermore, this position has to do with the report between the means and obligations of a bank, and as soon as they are released, the value gained is not greater than 15% of the first-class capital”, Ahmeti claims in an electronic response.

The director of the Office for Communications and Information at the Constitutional Court, Veton Dula, declares that the court cannot provide answers to the hypothetical questions posed by individuals concerning various constitutional issues.

“The court examines and decides only for legally set requests and on authorised parties”, Dula says in an electronic response.

Otherwise, two months after Kosovo's declaration of Independence has ratified the Kosovo Constitution in the Assembly, while it entered into force on June 15th 2008. The constitution is the Republic of Kosovo's highest legal act. However, other laws and legal acts must comply with this constitution.