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Kosovar Prime Minister Albin Kurti Stands Firm on Ban of Serbian Dinar

Kosovar Prime Minister Albin Kurti has made it clear that he will not back down on the central bank’s decision to ban the circulation of the Serbian dinar in parts of the country with Serbian majorities. However, he has indicated that he is willing to accept the formation of an Association of Serb-Majority Municipalities once Belgrade agrees to sign a basic agreement on bilateral relations.

The basic agreement, which was reached in February 2023, includes the formation of the association, aimed at better representing predominantly ethnic Serb areas in Kosovo. Despite not being a member of the European Union or the eurozone, Kosovo unilaterally adopted the euro in 2002 to bring monetary stability and simplify transaction costs.

Serbia, which has never recognized Kosovo’s 2008 declaration of independence, continues to pay many ethnic Serbs in Serb-dominated parts of Kosovo in dinars. The ban on the Serbian dinar, which came into force on February 1, was introduced to combat financial crime and terrorism.

Prime Minister Kurti emphasized that the ban does not prevent anyone from accepting money from any country, but rather requires that the funds be converted into euros. This has caused inconvenience for ethnic Serbs accustomed to using the dinar, but Kurti assured that financial aid sent in dinars from Serbia would be exchanged into euros for the benefit of Serbs in Kosovo.

Despite concerns raised by the U.S. envoy to the Western Balkans about the ban causing challenges in the region and affecting the U.S.-Kosovo relationship, Kurti remains steadfast in his support for the central bank’s decision. He stressed that the bank is an independent institution, and he cannot overturn its ruling.

Kurti also pointed out that the implementation of the basic agreement with Serbia has been hindered by Belgrade’s actions. He criticized Belgrade for violating several articles of the agreement and refusing to sign the document approved by European leaders. Kurti reiterated that any association of Serb-Majority Municipalities must be established within the framework of the Kosovar Constitution.

As tensions between Kosovo and Serbia persist, Kurti remains committed to seeking normalization of relations but insists that Belgrade must adhere to the agreements in place. He emphasized the importance of legal certainty for the future and expressed readiness to engage in further discussions in Brussels to resolve outstanding issues.

 

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