By Talha Ozturk
BELGRADE, Serbia (AA) – The US on Wednesday asked the Kosovo government to reconsider its decision to replace the local currency, the Serbian dinar, with the euro as of Feb. 1, fearing another tension between Pristina and Belgrade over the issue.
"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 decisions to be implemented in order to mitigate the impact those decisions will have on its citizens," according to a statement issued by the US Embassy in Kosovo, as reported by Radio Free Europe (RFE).
On Jan. 17, the country's Central Bank announced in a decree that Kosovo will adopt the euro currency for cash and payment transactions beginning Feb. 1.
The next day, Serbian President Aleksandar Vucic called the announcement of replacing the dinar with the euro as the official currency "worrying," saying it "throws into question all processes, both of normalization and dialogue."
The move could spark controversy and even unrest, as ethnic Serbian communities in Kosovo are currently using dinar, the official currency of neighboring Serbia, in both state institutions and commercial transactions. Many local Serbs have an attachment or even allegiance to Serbia.
Employees of Serbian institutions have been receiving dinars for salaries, pensions, child allowances, and social assistance. Prices in stores in northern Kosovo, which borders Serbia and has a large ethnic Serbian population, are displayed in dinars only.
According to the Central Bank decree, currencies other than the euro can only be used in the country for physical safekeeping or bank accounts.
Dinars arrive in Kosovo from the National Bank of Serbia, which has a vault in the town of Leposavic, also in northern Kosovo near the Serbian border.
Kosovo's population is predominantly Albanian, with a small number of ethnic Serbs concentrated along the northern border with Serbia.
Kosovo declared its independence from Serbia in 2008, with most UN member states including the US, UK, France, Germany, and Türkiye recognizing it as an autonomous country.
Serbia, however, still considers Kosovo its territory.