As the Serbian population in Kosovo teeters on the edge of enormous potential harm following the December 27, 2023 decision by the Kosovo government to suspend the Serbian dinar effective February 1, 2024, pressure mounts from the US State Department urging Prime Minister Albin Kurti to “reconsider.” The US stance was echoed by diplomats from France, Germany, Italy, and the UK, urging Prime Minister Albin Kurti to “suspend” the regulation in question.
Obtained exclusively by The Pavlovic Today from a senior diplomatic source, a memorandum authored by the Office for Kosovo and Metohija is currently making rounds within influential EU and US diplomatic circles. The memo underscores the far-reaching ramifications suspension of Serbian dinar could have on critical sectors such as hospitals, educational institutions, and kindergartens which are vital for the needs of the Serbian population in Kosovo.
According to the memo, the suspension of payments in Serbian dinars would immediately impact over 100,000 Serbs, as well as various ethnic groups such as Roma, Gorani, Montenegrins, Croatians, Turks, Ashkalis, Egyptians, Albanians, and Bosniaks.
Central Bank of Kosovo. [ Editorial credit: Robson90 / Shutterstock.com]
The memo conveys that the Kosovo Central Bank’s decision on December 27, 2023, to forbid the use of the Serbian dinar marks “the most dangerous escalatory step Pristina took so far.”
In response to the suspension of the Serbian dinar in Kosovo, the memo emphasizes the precarious situation confronting vital institutions such as schools, kindergartens, and hospitals. These institutions would be incapacitated in meeting their financial obligations, including salary disbursements, procurement of essentials, and operational expenses. Such a scenario threatens to precipitate a dire humanitarian crisis, exacerbating the already precarious situation for the Serbs in Kosovo.
One of the memo slides, seen by The Pavlovic Today, underscores the events of Orthodox Christmas Eve in 2023, when 11-year-old Serb boy Stefan Stojanović was admitted to Gračanica Hospital after he and his 21-year-old relative were shot and wounded by a member of the Kosovo Security Force, identified as Azem Kurtaj, during their participation in an Orthodox Christmas procession.
The Pavlovic Today Exclusive: The slides from the memo written by the Office for Kosovo and Metohija currently circulating among EU and US decision-makers, detailing the potential ramifications of the suspension of the Serbian dinar in Kosovo on the Serbian population.
Furthermore, the memo from the Office for Kosovo and Metohija expresses serious concerns about the profound impact the suspension of the Serbian dinar would have on Serbian-owned small businesses and essential services. The inability to conduct transactions in the Serbian currency jeopardizes the viability of these businesses, raising the specter of closures and subsequent job losses. This situation could lead to economic turmoil for the Serbian community in Kosovo.
Politically, the memo raises alarm about the potential fallout on established EU-led dialogue, past agreements, and energy pacts, which are pivotal pillars of regional cooperation efforts. The disruption caused by the unilateral suspension of the Serbian dinar by the Kosovo government would imperil the delicate balance achieved through these agreements, casting a shadow of uncertainty over the future prospects of regional stability.
Last week, the US Department of State expressed concern to The Pavlovic Today over the “negative impact” of the Kosovo government’s decision on the Serbian people. In the news report first seen in The Pavlovic Today, a State Department spokesperson urged the Kosovo government to “reconsider” their decision.
In Belgrade on Monday, Lajčák met with Serbian President Vučić. Following the high-level meeting, Assistant Secretary of State for European and Eurasian Affairs, James O’Brien, emphasized the imperative for “coordination before implementing new currency regulation,” a move expected from the Kosovo government.
“In our discussion, we focused on the strategic outlook for 2024, took stock on the state of play in the Dialogue and spoke about the next steps in the normalization of relations with Kosovo,” stated Lajčák after meeting with the Serbian President.
Vucic stated that during a meeting, he emphasized the need to establish the Community of Serbian Municipalities and urgently hold local elections in northern Kosovo and Metohija. He said that he ” requested the support of the EU in stopping further provocations coming from Pristina.”
According to the statement, the Serbian President reiterated the “readiness of the Republic of Serbia to fulfill its obligations in accordance with international agreements, while respecting the Constitution of the Republic of Serbia and the UN Charter.”
Director of the Office for Kosovo and Metohija, Petar Petković, stated on Tuesday in Belgrade that following yesterday’s meeting with Lajčák, Belgrade expressed “serious concerns” regarding the difficult position and situation of the Serbian people in the face of Albin Kurti’s government decision to abolish the dinar and Serbia’s payment transactions in Kosovo.
Peter Petkovic with the Ambassador of the United States to the Republic of Serbia, Christopher Hill
“We have done everything to explain to everyone the catastrophic consequences of abolishing the dinar and that it is a matter of the survival of the Serbian people in Kosovo and Metohija. If Kurti does not stop this and starts dealing with the Serbian Post, it will be clear that this man does not want peace,” stated Petkovic.
The Serbian National Bank maintains that since Kosovo is not an EU member, using the euro as an official currency lacks a legal basis and can only be provided by the European Central Bank.
Serbian people in Kosovo fear that Albin Kurti’s decision is a political tool for targeting Kosovo Serbs, aimed at “forcing them into displacement” and making them to leave their homes.
