The Serbian government’s Kosovo Office announced on Monday that the Serbian Postal Bank has opened four improvised bank branches near border crossings with Kosovo where Kosovo Serbs can withdraw their income from the Serbian state, such as salaries and pensions in dinars.
According to the statement, the Post Bank of Serbia opened branches in the Serbian part of the Jarinje, Bërnjak, Končulj and Merdare border crossings. The statement said:
In support of citizens, the bank sent two mobile branches with wheels that will be available at these locations according to the citizens’ needs.
It adds that “this technical solution is temporary until the normal functioning of payment transactions in the Serbian areas of Kosovo is established”.
On 1 February, the Central Bank of Kosovo implemented a regulation making the euro the only currency for payment transactions in the country. This came after the euro had been the country’s official currency since 2002 and the 2008 Constitution states that there is only one legal tender in the country.
Other currencies, including dollars, pounds, lek and dinars, will still be allowed for exchange, special currency accounts and unofficial transactions between individuals.
However, all official payments must be made in dinars, which will prevent large amounts of cash from being brought into Kosovo across the border, raising fears of organised crime and money-tracing.
Kosovo police have banned the import of physical dinars from Serbia several times over the past month on the grounds that it is prohibited by Central Bank rules.
Meanwhile, to give Kosovo Serbs a chance to adapt, the Kosovo government has imposed a three-month transition period for the rules to take effect. Kosovo Prime Minister Albin Kurti said the dinar is not banned, despite Serbian claims and numerous incorrect media reports, and urged Serbs to join the country’s banking system.
He said the central bank has offered the People’s Bank of Serbia facilities to convert dinars into euros and has provided free euro bank accounts for all Kosovo Serbs. These accounts will be able to deposit dinars and then withdraw money in euros, the official legal tender, the government said. Albin Kurti added:
Aid to the Serbian community, sent by the government of Belgrade, received in euros and registered through the bank account can be received for transparency and establishing legality. In this way, the amount of money sent from Belgrade will exactly match the money you receive in Kosovo.
