State Department urges Kosovo to revisit Central Bank decision to suspend the dinar

The State Department has urged Kosovo to reconsider the Central Bank's decision to suspend the Serbian dinar in payment transactions, expressing concern that the regulation adopted on December 27 may negatively impact the ethnic Serbian community in Kosovo, as reported by "The Pavlovic Today."

In response to a query from "The Pavlovic Today" regarding the Kosovo Central Bank’s decision to suspend the Serbian dinar on February 1, 2024, the State Department issued a stern warning to Kosovo Prime Minister Albin Kurti.

"We urge the Government of Kosovo to revisit this decision, consult with the affected communities, respond to the concerns expressed by the international community, and provide ample time for its decisions to be implemented in order to mitigate the impact those decisions will have on its citizens," a State Department spokesperson told "The Pavlovic Today."

Expressing the US concern about the Kosovo Central Bank regulation, the spokesperson stated, "We are concerned that the regulation adopted on December 27 will negatively impact the ethnic Serb community in Kosovo."

The State Department underscored that, in accordance with Kosovo law and the commitments made under the Ahtisaari Plan, Serbia "has the right to provide financial assistance to members of the ethnic Serb community in Kosovo."

Key Provisions of the Settlement in the Ahtisaari Plan stipulate that the "Serb-majority communities will have extensive financial autonomy and will be able to accept transparent funding from Serbia and to take part in inter-municipal partnerships and cross-boundary cooperation with Serbian institutions."

The State Department reminded Prime Minister Albin Kurti of the legally binding obligations Kosovo has undertaken.

"This is why we continue to urge Kosovo to fulfill its commitment to establish an Association of Serb-majority Municipalities," the spokesperson said.

He added that the CSM was the primary mechanism through which Serbia could transparently provide financial support within the Kosovo legal framework.

The State Department emphasized that individuals in Kosovo who "legitimately receive financial assistance from Serbia need access to a functioning, legal mechanism through which they can receive that support."

The spokesperson concluded that institutions providing vital services, such as education and healthcare, "must be able to continue operating."