Subscribe to our newsletter

Kosovo Central Bank Sets Three-Month Deadline for Dinar Ban Implementation

The Central Bank of Kosovo has set a definitive three-month deadline to fully implement its controversial regulation banning the Serbian dinar, amidst widespread protests and international scrutiny

The Central Bank of Kosovo (CBK) has announced a stringent three-month transition period for the enforcement of its regulation, which prohibits the use of the Serbian dinar, asserting that the euro will be the sole currency for cash transactions across the nation. This move, effective from 1st February, has persisted despite significant international calls for postponement.

In a statement released on Monday, the CBK unveiled a new plan aimed at easing the regulation’s impact on cash operations within certain communities, indicating imminent actions to be executed promptly within a three-month timeframe, in collaboration with banks and other financial entities.

The regulation has sparked protests among the Serbian community in North Mitrovica, voicing their opposition to the measure.

The CBK’s recent strategy follows international criticism towards Kosovo’s* authorities for not delaying the regulation’s implementation, with suggestions that more time is needed for the Serbian community to adapt.

Prime Minister Albin Kurti has maintained that while Kosovo* will not retract the ban on dinar cash transactions, it acknowledges the international community’s concerns.

To assist Kosovo Serbs, particularly in the four northern municipalities, the CBK has introduced several support measures, including a toll-free hotline (0800-222-55), a dedicated email for grievances, and a specialized “viber” number.

Serbia’s Response: Navigating Kosovo’s* Currency Clampdown

Serbia has vehemently condemned the CBK’s regulation, interpreting it as Kosovo’s* government’s attempt to expel Serbs. Serbia has been financially supporting its community in Kosovo* through a parallel system, disbursing salaries, pensions, and additional aid amounting to millions of euros.

For years, the National Bank of Serbia has dispatched dinars to a vault in the Leposavić municipality in northern Kosovo*, with international firm Henderson facilitating the transport. The CBK deems such practices illegal, asserting its exclusive right to export and import currency within Kosovo’s territory.

Must Read

Serbia Commits to Nuclear Energy with New Memorandum

This agreement is aimed at advancing the development and application of nuclear energy within the country. The Memorandum was signed by the Ministry of Environmental...