The appeal follows a decision by the central bank of Kosovo that adopted a regulation a day ago, stating that Euro is the only currency allowed for cash payments in the Kosovo payments system. Under the new regulation, currencies other than the euro can be used in Kosovo only as safekeeping in physical form or bank accounts.

The regulation stipulating for the payments to be carried out in the Europe’s single currency only is seen by Serbia as a ban on its national currency Dinar.

The EU spokesperson Peter Stano, answering the questions related to the Bank’s decision, which will come into force on February 1, said that the European bloc is still analyzing the issue.

“We are still analyzing the move and demanding clarifications on this decision, motives and its implications. Both Kosovo and Serbia should shun uncoordinated actions that run counter the spirit of normalization of the relations, since such actions could have negative effects on the situation,” Stano said.

He renewed the appeal to both sides to address this issue as part of the EU-mediated normalization dialogue.

Salaries, pensions, child allowances, and social assistance have been paid in dinars to employees of Serbian institutions. Stores in northern Kosovo – an area dominated by ethnic Serbian population – display prices in dinars.

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.

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