The Central Bank of the Republic of Kosovo has announced the withdrawal of over 180,000 pieces of 500-euro banknotes from circulation.

According to the Central Bank, as a result of the Regulation on Cash Operations, the number of 500-euro banknotes deposited by citizens in commercial banks and later in the CBK, as cash withdrawn from circulation, has exceeded 180,500 units, surpassing the value of 90 million 250 thousand euros.

The announcement states that this is one of the direct effects of the Regulation since its approval, contributing to achieving the goal of a financial system with integrity and supporting the national strategy against informality and related phenomena.

“The Regulation on Cash Operations, among other things, stipulated that all banking and non-banking financial institutions are obliged to cease re-circulation of the 500-euro banknote to their clients. The Central Bank of the Republic of Kosovo remains committed to advancing the legal and supervisory framework in the implementation of its constitutional mandate and in line with its strategic objectives, with transparency and dedication to the public,” the announcement said.

Earlier, the Board of the Central Bank of Kosovo approved the new Regulation on Cash Operations.

Through this regulation, which came into force on February 1, banking and non-banking financial institutions are required to cease the re-circulation of existing banknotes in the value of 500 euros.

“The import and export of euro banknotes and coins and other currencies in the Republic of Kosovo can only be done to and from banking and non-banking financial institutions licensed by the Central Bank of the Republic of Kosovo for the exercise of banking financial activities”.

The new Regulation emphasizes that the only official currency in Kosovo is the euro, consequently removing the Serbian dinar from circulation.

The removal of the Serbian dinar from circulation has sparked international reactions.