Andric Rakic: If the withdrawal of dinars is prevented, the cost of living for citizens will increase

Milica Andric Rakic, Program Manager of the NGO Social Initiative, stated for Kosovo Online regarding the entry into force of the decision of the Central Bank of Kosovo to discontinue the use of dinars, that it was possible that a shortage of dinars in cash might be felt in the coming period if the withdrawal was prevented, and that, at this moment, there was a dysfunctionality of institutions that provided key services.

Our interlocutor emphasizes that the issue of the dinar ban in Kosovo has multiple levels, and it is challenging to predict how it will affect the citizens until the issue of dinar imports is resolved.

"While we don't know if the import of dinars can continue and under what conditions, we still cannot say, but currently, it seems to me that we do not yet see the consequences because there are reserves of dinars in cash. Citizens could withdraw money today. If the withdrawal of dinars is prevented, we will have the same scenario we had shortly after the events in Banjska, when, also due to the fact that the borders were closed, dinars could not enter, and we had a shortage of dinars in cash. First, we saw restrictions on how much money could be withdrawn daily, and at one point, there was no money at all. It will be most practically felt this way. Citizens will have to go to Raska or Novi Pazar or any other city closest to them from the south to access their money. This will increase their living expenses, reduce the money they have to use if they additionally have to convert it in Kosovo, and they will lose a certain value of the money they possess," Andric Rakic said, adding that citizens' lives would become more complicated and more expensive.

Speaking about the Postal Savings Bank, Andric Rakic emphasizes that this bank is part of a solution that Serbia envisions, and the only way it could continue to operate seamlessly as before is for it to be licensed, similar to how Komercijalna Banka was licensed.

"To license the Postal Savings Bank to import dinars or, alternatively, to continue with payment transactions and even convert euros and issue them itself, is a less problematic option. What is crucial is that the payment system must remain functional until the status of Serbian institutions in Kosovo is resolved, either by forming the CSM or through a new agreement," Andric Rakic emphasizes.

She believes that the key issue is institutions and maintaining the payment system until an alternative is found.

"At the moment, we have a dysfunction of the only institutions that provide key services, and there is no alternative, which is what the EU highlighted in the statement this morning. It seems that Serbia sees the Postal Savings Bank as part of a solution. It would be good to inform the public more about how this is perceived, especially for the people here. Unfortunately, we have very little information, both from the CBK and the NBS, on how this will develop further," Andric Rakic stated.