The Pavlovic Today: The Office for Kosovo and Metohija warns that the decision to abolish the dinar would affect around 100,000 people

Dokument Kancelarije za KiM
Source: Kancelarija za KiM

In a memorandum from the Office for Kosovo and Metohija circulating in diplomatic circles of the United States and the European Union, a warning is issued that the suspension of the Serbian dinar in Kosovo could have far-reaching consequences on critical sectors such as hospitals, educational institutions, and kindergartens that are vital for the needs of the Serbian population, The Pavlovic Today writes, who had insight into the report.

The Pavlovic Today points out that the decision of Pristina could affect around 100,000 Serbs, as well as various ethnic groups such as Roma people, Gorani people, Montenegrins, Croats, Turks, Ashkali, Egyptians, Albanians, and Bosniaks.

In the memorandum, as reported, the far-reaching consequences of the suspension of the dinar on the Serbian population in Kosovo are detailed.

While the Serbian population in Kosovo is on the brink of significant potential damage following the Kosovo Government's decision on December 27, 2023, to suspend the Serbian dinar from February 1, 2024, there is growing pressure from the US State Department calling on Prime Minister Albin Kurti to 'reconsider' the decision of the Central Bank of Kosovo.

The US stance has been reiterated by diplomats from France, Germany, Italy, and Great Britain, urging Kurti to 'suspend' the decision to abolish the dinar.

According to the letter, the suspension of payments in Serbian dinars would immediately affect over 100,000 Serbs, as well as various ethnic groups such as Roma people, Gorani people, Montenegrins, Croats, Turks, Ashkali, Egyptians, Albanians, and Bosniaks.

The letter states that the decision of the Central Bank of Kosovo on December 27, 2023, to prohibit the use of the Serbian dinar is the 'most dangerous escalation step by Pristina so far'.

In response to the suspension of the Serbian dinar in Kosovo, the letter points out the precarious situation in which vital institutions such as schools, kindergartens, and hospitals are exposed.

"These institutions would be unable to meet their financial obligations, including payment of salaries, procurement of basic necessities, and operational expenses. Such a scenario threatens to trigger a terrible humanitarian crisis, exacerbating the already uncertain situation for the Serbs in Kosovo," the letter states.

The Office for Kosovo and Metohija expresses serious concern about the profound impact of the suspension of the Serbian dinar on small businesses and essential services owned by Serbia.

"The inability to conduct transactions in the Serbian currency jeopardizes the sustainability of these businesses, increasing the appearance of closures and subsequent job loss. This situation could lead to economic turmoil for the Serbian community in Kosovo," the Office for Kosovo and Metohija warns.

Politically, the memorandum expresses concern about the potential consequences for the established EU-led dialogue, the implementation of existing agreements, and energy contracts, which are key pillars of regional cooperation.

Last week, the US State Department expressed concern to The Pavlovic Today about the "negative impact" of the Kosovo Government's decision on the Serbs.

A State Department spokesperson called on the Kosovo Government to "reconsider" its decision.

On Monday, Lajcak met with Serbian President Vucic in Belgrade. After the high-level meeting, Assistant Secretary of State for European and Eurasian Affairs James O'Brien emphasized the importance of "coordination before the implementation of new currency regulations", a move expected from the Kosovo Government.