Prime Minister of Kosovo, Albin Kurti, made a statement today supporting the Central Bank of Kosovo regarding the Regulation on the use of currencies in Kosovo.
However, he said that the way the decision on the dinar was communicated was not appropriate, therefore, he said that a transition period is necessary.
In a letter sent to the media, Kurti says that “this regulation does not target the Serbian dinar”.
He says that this decision is a fundamental responsibility of the Central Banks, aimed at regulating the flow of foreign currencies within the territory and that the lack of such regulation “may lead to money laundering, terrorist financing and other illegal activities”.
The head of the government of Kosovo writes that from a practical point of view, this decision means that payments received by Kosovo Serbs are still permissible, “but will be deposited in their accounts in Euros”
Moreover, he says that the opening and maintenance of new bank accounts in Euro “will be free of charge”, while he says that the ongoing efforts of the Government “aim to simplify this process”.
Albin Kurti’s Full Announcement:
I write this statement prefacing that the Office of the Prime Minister fully supports the independence of the Central Bank of Kosova (CBK) and the professionalism with which it carries out its duties. In this capacity, I feel
obliged to defend the professionalism of public bodies. At the end of last year, the Central Bank issued its regulation on cash op- crations. Regulating the way foreign currencies operate in a country is
naturally a core competence of the Central Bank. This regulation does not target Serbian Dinar. The Central Bank has rightfully sought that the informal transactions happening in Serbian Dinars be formalized; therefore, their existence and continuation had been illegal. Kosova’s official currency is the Buro, and the regulation
comes almost sixteen years after our declaration of independence. This decision is a fundamental responsibility of Central Banks, aimed at regulating the influx of foreign currencies inside the territory. The ab- sence of such regulation can lead to money laundering, terrorism financ-ing, and other illicit activities. In practical terms, this decision means that payments received by Kosova Serbs are still allowed, but will be deposited into their Euro-denominated accounts. Naturally, private possession of foreign currencies remains per-missible. Because our government allocates public money in form of subsidies and other tools for social protection, which were simultaneously received by the Serbian community in their Euro-denominated bank accounts, there is strong evidence that these bank accounts are in wide use. Almost 35% of the Serbian community in Kosova receive pensions from our government in Euro-denominated accounts. The pensions they do receive from Serbia could be transferred to these same accounts as complementary and not as replacement for existing benefit schemes. In addition to official bank branches, there are fifteen financial institutions where pensions from Serbia can be paid, in the absence of bank accounts.
Moreover, the opening and maintenance of new bank accounts in Euros will be free of charge. Our ongoing efforts aim to further streamline this process. The period of transition is already underway, and joint efforts will ensure its swiftness and smoothness.
All change brings difficulties, even if the changes enforce democracy. But a period of transition should never be misconstrued as an attack or a deepened divide. And the brief uncertainty encountered during this period should not be used for political gain. This period of change is made difficult not through the voices of the Serbian community here, but through the aiding of fearmongering, when we, in fact, are supposed to exert prudence and calm.
We understand that the way the issue has been communicated could have been clearer in order to avoid confusion. Although the regulation has entered into force on the 1st of February, we recognize that a period of transition is needed. Over the course of this month, we will make sure to provide all the information and assistance needed for this transition to be as smooth as possible. Going forward, we also pledge to foster communication campaigns that address these issues with the sensitivity they de-serve.
It is the opinion of all who care about Kosova that we are in progress and there is progress to be attained. In this path, our actions are judged on two grounds: 1) the intentions and 2) the letter of the law. An action that seeks to strengthen democracy while enforcing the law should be read for what it is. As our country levels up in its democratic strength, it will likely require some adjustment.
To the many parties that are strongly invested in the prosperity of our country, I urge the same: let adjustments take place so that we reach the next step that all of us so diligently work towards.
