International Information Centre for Balkan Studies

CBK issues instructions for implementation of cash regulations

February 12, 2024

The Central Bank of Kosovo (CBK) said that, in cooperation with banks and other financial institutions, it is undertaking additional activities aimed at facilitating the implementation of the recently adopted Regulation on enforcing the euro as the country's sole currency.

The CBK said the activities that are to facilitate the effects of the implementation of the Regulation on cash operations in specified communities will be undertaken for a period of no longer than three months.

Following the issuance of the CBK Regulation at end of December under which the euro is the only currency permitted for cash payment transactions in Kosovo as of February 1, and the import and export of all cash is exclusively the right of the central bank, Pristina agreed to ensure a transition period for the Kosovo Serbs receiving their incomes to adapt to the new regulations, which the international community had particularly insisted on.

The CBK said these activities include the following:

„Operationalization of a free telephone line (0800-222-55), complaints e-mail, as well as a dedicated number on “Viber”

Easing of the terms and conditions for opening of bank accounts, in special cases in municipalities with Serb majority, especially in the four northern municipalities, with the possibility of completing documentation (proof of address) even after opening and activating the account;

Temporary suspension of the CBK fee applicable for opening branches/offices, in order to encourage the licensed non-bank financial institutions (especially exchange bureaus) to open the branches in the Serb-majority municipalities of Kosovo, especially in the four northern municipalities;

Expanding the presence of bank and non-bank branches for covering with additional branches and increasing of providing of financial services in the municipalities in the north of the country;

To organize for the providing of banking services (account opening) in a mobile way by commercial banks (remote banking) in each of the four northern municipalities, in an organized way in order to be as close as possible to the citizens;

The deployment of several ATMs and other devices enabling the electronic payments (POS), or financial self-services;

Facilitation of the exchange process of dinars with EURO, from licensed financial institutions and exchange bureaus;

Continue intensified promotional activities, with personalized and simplified materials, video messages, as well as focused financial education;

Increase of access to finance, further increase of lending and other financial packages focused on these areas by financial institutions;

Review of the conditions of conversion with preferential rates when accepting funds and withdrawals at ATMs, with international scheme cards issued outside Kosovo.”

These actions are taken in addition to the constructive engagement, in facilitating the mechanism of transferring funds in the most efficient way from Serbia to Kosovo, said the CBK, voicing readiness to also consider other options.

Source:  https://n1info.rs/english/news/cbk-issues-instructions-for-implementation-of-cash-regulations/

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