Starting today, the Euro will be the sole currency for transactions in Kosovo, marking the conclusion of the transitional period of the Central Bank of Kosovo. From Monday onwards, a new regulation will come into effect to implement this significant change in the country's financial system.
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| Some coins and banknotes in Euro and Serbian dinar |
Last Sunday marked the end of the transitional period of the Central Bank regarding the issue of the Dinar. During this time, no punitive measures were issued, but information was provided to citizens regarding the implementation of regulations for cash transactions.
Meanwhile, commercial banks operating in Kosovo have been instructed to open new branches in the north.
After May 12, all cash transactions throughout Kosovo must be conducted in Euros.
"Other non-Euro currencies can be used in the Republic of Kosovo as values for physical storage or in bank accounts in non-Euro currencies, for conducting international payments in non-Euro currencies, and for foreign exchange activities," as quoted in the Central Bank's regulation.
The implementation of the regulation, especially in the north of the country, is expected to be challenging.
Prime Minister Albin Kurti addressed this issue today, stating that the purpose of this regulation is legality, not punishment.
"The Central Bank of the Republic of Kosovo has clarified that the aim is legality, transparency, not punishment and condemnation. It is those who are higher than us and lead in this transition process as smoothly as possible," he said.
He reiterated that the Central Bank's regulation is not against the Dinar but is for the Euro as the sole means of payment in Kosovo.
On February 1, the new regulation of the Central Bank of Kosovo came into force, stipulating the Euro as the sole currency for payments.
This decision, which sparked heated debates months ago, even prompted special meetings in Brussels between parties to find a way out of what was called a blockade on payments for Serbs in Kosovo.
Indeed, the seventh consecutive meeting will be held in Brussels next week to find a solution for the population in northern Kosovo - predominantly inhabited by Serbs - affected by the decision. Serbs in Kosovo have accepted Dinar cash from the Serbian budget for years.