Disagreement over Kosovo decision on Serbian dinar, EU urges clarification

The European Union urges Kosovo additional clarifications for a decision by the Kosovo Central Bank, which from Serbia is being interpreted as a decision barring the use of the Serbian dinar in Kosovo. The United States of America also urged Kosovo to reconsider its decision allowing only the euro for bank transactions in Kosovo.

Days ago, the Kosovo Central Bank adopted a regulation for cash operations that envisions the euro as the only currency for conducting transactions, though the regulation does not specifically mention the Serbian dinar ban. This decision takes effect on February 1st.

Where are Serb dinars used in Kosovo?

In all settlements in Kosovo where Serbs are majority, citizens use the Serbian dinar to pay fees. Also, Serbs working for Serb parallel institutions in Kosovo receive salaries with dinars. Serbia's dinars are also paid for pensions, additions for children and social aid. Serbia's dinar is also used in commercial objects in Serb-inhabited areas. Serbia's Valuta, the dinar has been brought to Kosovo through the National Bank of Serbia, which is said to have a safe in Kosovo's northernmost municipality of Leposaviq. Serbian dynasties in Kosovo are also circulated through Serbian public company “Serbia's post”, which has subsidiarys in Serb-run settlements in Kosovo. In the Kosovo Central Bank regulation, “import and export of euro currency and metal currency and other currency in Kosovo is reportedly the only executive right of”.

“Kosovo and Serbia avoid uncoordinated actions”

The European Union urged Kosovo and Serbia to avoid uncoordinated actions, which are not in the spirit of normalising the reports, decisions that could negatively affect the situation on the ground. “We are still analyzing and asking for clarification of this decision, motives and implications that he might have. Kosovo and Serbia must avoid uncoordinated actions that do not go into the spirit of normalisation of reports and that may have a negative impact on the situation on the ground”, said EU spokesman Peter Stano. According to him, the “two sides should address this issue under the dialogue for normalising the reports”, which is mediated by the European Union.

The EU's special envoy for Kosovo-Serbia dialogue, Miroslav Lajcak, said for his part, that he “hopes a solution will be found so that there will be no negative results”. He said the information he received from Kosovo on the issue has been forwarded to Brussels.

Regarding the Kosovo Central Bank's decision, Kosovo Deputy Prime Minister Besnik Bislimi, who is at the same time Kosovo's chief negotiator in dialogue with Sebina, said that “the particular importance of the BQK regulation lies in determining the currency allowed to be used in all non-bank bank transactions in Kosovo, which in this case is Euro”. “Each of the citizens of the Republic of Kosovo that has acted in opposition to this has been on the other side of the lawbreaker”, Bislimi wrote on Facebook. According to him, the amended “Rule is not the product of political negotiations in Brussels, and how could it have any impact on the end of the process of normalising reports between the Republic? Kosovo and our northern neighbour”, Bislim wrote.

US reaction

Reactions from the American side have also been disturbed. The US Embassy in Pristina in a statement stresses that the Kosovo government should consult with communities affected by this decision, and address concerns expressed by the international community. “We are concerned that the regulation adopted on December 27th will have a negative impact on the Serb community in Kosovo. Under Kosovo laws, as well as on the basis of pledges Kosovo has made with the Ahtisaari Plan, Serbia has the right to send financial assistance to members of the Serb community in Kosovo”, the US Embassy's response was said.

Serbia has reacted sharply after decision

Against the Kosovo Central Bank decision, authorities in Serbia immediately voiced themselves. The director of the Office for Kosovo in the Serbian Government, Petar Petkovic, said that “expects what Lajcak has stated to be realised, that is, to find a solution that will not end with negative consequences”. Meanwhile, the largest party of Kosovo Serbs, List Srpska, said this decision as saying “of Albin Kurti's regime is the decision to expel Serbs from these areas without using weapons”. “After all forms of institutional violence used against the Serbian people by Kurti's authoritarian regime and failed to expel all Serbs from Kosovo, he has now decided to ban the dinar in Kosovo and thus directly threaten the physical survival of the Serbian people”, the Serbian List's response reported. / DW