Concerns over Currency Policy in Kosovo’s Serb Majority Areas

The authorities in Kosovo have implemented a policy that restricts the use of Serbian dinars as an acceptable currency, causing growing concerns among international partners. While the government has stated that immediate punitive measures will not be taken against those using the dinar, Kosovo Serbs remain uneasy, as their identities have been consistently undermined. Symbolic representations of Serbian culture, such as number plates and flags, have been removed, intensifying the sense of marginalization. This currency policy directly affects areas like North Mitrovica, where prices are denominated in Serbian dinars due to the majority Serb population and their refusal to recognize Kosovo’s independence. The population in these regions, including both workers and pensioners, rely on dinars as their salaries and benefits are still paid by the Serbian government. The sudden announcement by the central bank to ban the dinar has left little time for adaptation, attracting criticism from the EU, the US, and the UK. The absence of prior consultation and limited alternatives could have a profound impact on schools and hospitals. However, the Kosovo government disregards these concerns, claiming that the policy aims to protect consumers and the payment system. In contrast, the International Crisis Group suggests that this currency ban is part of a broader pattern of sustained pressure on the Kosovo Serbs since Prime Minister Albin Kurti assumed power in 2021. Security measures, embargoes on Serbian goods, and eviction of Serbian institutions have resulted in an estimated one in ten Serbs leaving Kosovo in the past year. Furthermore, talks between Belgrade and Pristina have stagnated, limiting the influence of the EU. Despite the ban, locals in North Mitrovica are still utilizing dinars, but the overall situation exacerbates the feeling of insecurity among Kosovo Serbs.