The U.S. Department of State (DOS) says that discussions in Brussels regarding the regulation of the Central Bank of Kosovo (CBK), which prohibits the use of the Serbian dinar in Kosovo, “must continue urgently”.
“The dialogue facilitated by the European Union is the right channel for resolving issues related to the normalization of relations between Kosovo and Serbia,” said a DOS spokesperson, after being asked by Radio Free Europe (RFE) to comment on the discussions held on Tuesday regarding the regulation issue.
Their mediator, the EU envoy for the Kosovo-Serbia dialogue, Miroslav Lajčák, said that many political questions regarding the issue of the Serbian dinar in Kosovo remained unanswered, hence “additional meetings are needed”.
The Governor of the CBK, Ahmet Ismaili, who led the Kosovo delegation, said that the regulation was not discussed, but rather the opportunities it offers for the transfer of funds from other countries to Kosovo.
The Serbian delegation was led by chief negotiator Petar Petković, who said that the CBK regulation requires a solution at a political level.
The discussions followed the reinforcement of this regulation, which designates the euro as the sole currency for cash payments in Kosovo.
However, the regulation provoked angry reactions from official Belgrade, which financially supports the Serbian community in Kosovo.
The international community also expressed concerns about its impact on the lives of Serbian citizens and called for its suspension.
Assistant Secretary of State James O’Brien said the decision regarding the dinar has questioned the Kosovo-US relations.
“The United States has been clear in expressing concerns about the new regulation,” said the DOS spokesperson for RFE.
He reiterated calls for Kosovo and Serbia to lower tensions and engage “seriously and urgently” in efforts “to achieve a peaceful and productive relationship within the framework of EU-facilitated dialogue”.
Kosovo’s Prime Minister Albin Kurti insists that the CBK’s decision cannot be revoked. According to him, the regulation does not prohibit payments from Serbia’s budget, but they must be made in euros.
Serbia’s President Aleksandar Vučić says that Kurti’s aim is “the ethnic cleansing of the Serbian people from Kosovo”.
