The US and the EU recently expressed concerns over actions by the Kosovo government against Serbia-run organisations, including the raiding of such organisations and a ban on Serbian currency.
Jeffrey M. Hovenier, the US Ambassador to Kosovo, highlighted the US government’s deep worry regarding these actions which have significant negative effects on the ethnic Serb and other minority communities in Kosovo. The actions include the raiding of several Serbian institutions and a ban on Serbian currency. Both the US and EU have urged the Kosovo government to steer clear of unilateral actions that could exacerbate tensions and instead handle these issues through EU-facilitated dialogues.
Earlier this month, the Central Bank of Kosovo approved the “Regulation on Cash Operations”, ostensibly aiming to control financial institutions and have clear guidelines for controlling the amount of money in circulation, stopping counterfeit money, preventing money laundering and terrorist financing. The regulation states that the only currency to be used in Kosovo should be the Euro, thereby excluding the Serbian Dimar.
While the new rules were set to begin on February 1, there have been concerns that the regulations might impact the Serb minority in the country, who currently use the Dimar for many financial transactions. Despite the ban, the Kosovo Serbs reportedly continued using the Dimar.
According to a statement from the EU, these actions, especially the raiding and closure of Serbian-run organisations, could have detrimental effects on the daily lives and living conditions of Kosovo-Serb Communities. This might restrict their access to basic social services due to the lack of alternatives at this moment.
Serbia does not recognise the independence of Kosovo since its declaration of independence in 2008, which furthers tensions in the region. The EU and NATO recently committed to stabilise the region amid rising tensions.