The Central Bank of Kosovo has approved a regulation for cash operations, stating that the only currency allowed for cash transactions in Kosovo is the euro.
This regulation will come into effect on February 1.
“The only permitted currency for conducting cash payment transactions and in the payment system in the Republic of Kosovo is the euro, as the sole currency also in the sense of Article 11 of the Constitution of the Republic of Kosovo and Articles 16, 17, and 18 of Law No. 03/L-209 on the Central Bank of the Republic of Kosovo,” states Article 35 of this regulation.
In Kosovo, in all predominantly Serbian settlements, the population uses the Serbian dinar to make payments, and those working in Serbian institutions in Kosovo also receive salaries in dinars. Pensions are also paid in dinars according to the Serbian system, as well as child allowances and social benefits.
Moreover, in areas where Serbs reside, dinars are used in commercial establishments, while in the four Serbian-majority municipalities in the north, prices are quoted in dinars.
According to the regulation of the Central Bank of Kosovo, non-euro currencies can only be used for “physical preservation or in bank accounts”, and they can be used for international payments, and these currencies can also be used for exchange.
However, according to the Central Bank of Kosovo, exchange can only be done through institutions licensed by it for this service.
Until now, dinars in Kosovo have circulated through the Serbian public company “Serbia’s Post Office”, which operates in Serbian-populated settlements in Kosovo. Dinar accounts are also held in the banks “Postanska stedionica” (Postal Savings) and “NLB Komercijalna banka”.
Dinars have come to Kosovo from Serbia through the National Bank of Serbia, which has a vault in Leposavic, a municipality in the north of Kosovo predominantly inhabited by Serbs. The money there was transported by the cash transport company “Henderson”.
The regulation of the Central Bank of Kosovo states that the import and export of euro banknotes and coins and other currencies in Kosovo is within its executive competence.
Earlier, the issue of non-euro transactions was raised by the President of Serbia, Aleksandar Vučić, who said that Kosovo would stop transactions with dinars.
The Government of Kosovo has not commented on this issue.
Meanwhile, the EU Special Representative for the Kosovo-Serbia Dialogue, Miroslav Lajčák, told the Serbian television Pink that he has discussed the use of the dinar in Kosovo with Kosovo’s Deputy Prime Minister, Besnik Bislimi, and has informed Brussels about this matter.
