Serbian Defence Minister: Diplomatic war for the dinar awaits

Commenting on Kosovo's decision to withdraw from the use of the Serbian dinar, the deputy prime minister, at the same time Serbia's Defence Minister Milos Vuchev, said Serbia has no choice but to fight politically and diplomaticly for, as he put it, the survival of Serbs in Kosovo.

Everything but diplomatic and political dialogue and solutions through activities of this kind leads to what we would not like to see”, Vuchev said on February 1st during a proposal for Serbia's Radio Television.

On February 1st, the implementation of the Central Bank's regulation of cash operations, which envisions only the use of the euro for payment, ending the use of the Serbian dinar, used by local Serbs in Kosovo for payment, but they also receive pensions and additions from Serbia's budget to dinars.

Vucevic estimated that this decision “is an attack on Serbian economic security” in Kosovo, and that, according to him, adverse “must be created for their survival.

He also said Serbia remains committed to dialogue on normalising reports with Kosovo, which is mediated by the European Union and supported by the United States.

“It is our national interest to maintain peace”, said Vuchev, who also stressed that restoring mandatory military service in Serbia does not concern “problems in Kosovo”.

The Kosovo government said implementation of the regulation for cash operations will take place through a relaxed transition.

Kosovo executive said the BEC regulation does not mean it will stop transfers of money from Serbia and does not also imply financial penalties for the possession of currency of other states.

However, on February 1st no import of money will be allowed if the institutions that make the import are not licensed by the CEC.

On 31 January, Kosovo Deputy Prime Minister Besnik Bislimi said he would launch a campaign to inform citizens of this regulation, adding that he hopes there will be talks between Kosovo's central banks and Serbia for finding a mechanism for transparent transfer of tools.

From the National Bank of Serbia, the Ministry of Finance and the Government of Serbia have not answered Radio Free Europe questions if talks are planned with the Kosovo Central Bank on the issue and what the next steps will be.

Similarly, the international community had urged Kosovo to postpone implementing the BEC regulation.