Deputy Assistant Secretary of State Gabriel Escobar has issued a warning about Kosovo’s ban on the Serbian dinar, stating that it could lead to a humanitarian crisis for the country’s ethnic Serb minority. Escobar emphasized the need to address the issue immediately, as it has already caused hardship for some citizens.
The ban, which was implemented by Kosovo’s central bank on February 1, has sparked tensions in minority Serbian areas where the dinar is commonly used for pensions and salaries. Escobar’s concerns come as the U.S. and other Western nations are working to restart talks between Kosovo and Serbia to normalize their relations.
In response to international pressure, Kosovo has postponed the implementation of the ban for several months. The ban requires banks and financial institutions in Serbian-dominated areas to use the euro instead of the dinar for local transactions.
Meanwhile, the Kosovo government’s decision to recognize the land rights of the 14th century Serbian Orthodox monastery of Visoki Decani has been welcomed by Western ambassadors. The monastery, listed as an endangered World Heritage site, has been fighting for formal title to its lands for nearly a decade.
Kosovo’s Prime Minister Albin Kurti has stated that implementing the verdict on the monastery’s land title was the final condition set by the Council of Europe for Kosovo’s membership. The international community has been urging Kosovo to legalize the monastery’s land.
The ongoing tensions between Kosovo and Serbia stem from Kosovo’s declaration of independence in 2008, which Belgrade does not recognize. The situation remains complex as both countries navigate their relationship while also seeking to join the European Union.
