The United States Ambassador to Kosovo, Jeff Hovenier, said on Thursday that the U.S. opposes the hasty implementation of the regulation of the Central Bank of Kosovo – which stipulates that only the euro currency be used for cash payments throughout the country – before its implementation is fully prepared.
Speaking to reporters after a meeting with Kosovo Prime Minister Albin Kurti, Hovenier said the U.S. is concerned that the regulation, which puts an end to the use of the Serbian dinar in the country, could fuel ethnic tensions in the country.
“I want to reiterate what the United States has said, we have deep concerns and reservations about its implementation before it is fully prepared. I can say with certainty that we oppose it now,” Hovenier said.
Kosovo’s Deputy Prime Minister, Besnik Bislimi, said on Wednesday that the implementation of the regulation for cash payments will be through a facilitated transition, without indicating how long this will take.
Hovenier said he hopes that the Government of Kosovo will find a way “to understand what Bislimi has said, to have a transition period during which the challenges are understood before it is fully implemented”.
Since the post-war period in 1999, Serbia, which does not recognize Kosovo’s independence, has used the dinar to pay pensions, social assistance, and salaries for parallel institutions it has in Kosovo, including hospitals and schools.
Residents of the ten municipalities with a Serbian majority in Kosovo have also used the dinar for payments in shops and restaurants.
Hovenier expressed concern about the impact the ban on the dinar could have on Kosovo Serbs.
“We are concerned that the regulation, as we understand it, does not fully take into account the impact it will have on individuals, especially individuals receiving financial support from the Serbian Government. We believe this issue deserves more careful consideration and discussions in the EU-mediated dialogue. We are concerned that it may escalate ethnic tensions and be problematic for the daily lives of a number of Kosovo citizens,” he added.
Earlier, the National Bank of Serbia called for the repeal of the regulation of the Central Bank of Kosovo and called for the issue to be resolved through political dialogue.
It told Radio Free Europe that “there can be no talk” of an agreement between it and the Central Bank of Kosovo, as suggested by Kosovo’s Deputy Prime Minister, Besnik Bislimi.
“This issue must be resolved exclusively within the framework of the existing level of dialogue,” the National Bank of Serbia said, referring to talks on the normalization of relations between Kosovo and Serbia.
The European Union has also called on Kosovo to offer a long transition period for the abandonment of the use of the Serbian dinar.
“The short transitional period for the implementation of the regulation, together with the lack of information and practical solutions for all affected communities, risks seriously complicating their lives,” the EU said in a statement released on February 1.
The European bloc also called on Kosovo to “find a negotiated solution to this issue within the framework of the Brussels-mediated dialogue”.
The Government of Kosovo has stated that the regulation of the Central Bank of Kosovo does not imply that transfers of money from Serbia will be stopped and also does not imply financial penalties for possessing currencies of other states.
