Kosovo’s push to replace the Serbian dinar with the euro is facing resistance in Serb-majority areas, where the dinar remains central to daily life, highlighting deep economic and political divides.
Kosovo’s efforts to replace the Serbian dinar with the euro have hit a roadblock in Serb-majority areas, where the dinar remains deeply rooted in daily life.
The policy, introduced last year, was designed to unify Kosovo’s economy and strengthen financial independence. But in northern towns like Mitrovica, the rule is proving tough to enforce, with locals sticking to the Serbian currency.
“This is about more than money—it’s about sovereignty,” said Central Bank Governor Ahmet Ismaili. He argued that adopting the euro exclusively would cut down on illegal trade and foster economic stability.
Still, the change hasn’t been smooth. “We underestimated how embedded the dinar is in these communities,” admitted Mejdi Bektashi, an economist from the University of Pristina. Many Serbs in Kosovo receive their salaries and pensions from Serbia, paid in dinars, making a switch impractical for now.
Strain on local communities
For residents in the north, the euro-only rule has created new challenges. Petar, a schoolteacher, says he now has to cross the border into Serbia to access his salary. “It’s a hassle,” he said. “Why force us to change something that works?”
The Serbian government continues to pay locals in dinars, further complicating Kosovo’s plans. Meanwhile, shops and markets in the north are split, with some accepting euros and others sticking to dinars.
The policy highlights wider tensions between Kosovo and Serbia, as EU-mediated talks between the two sides remain stalled. Without a compromise, experts warn that enforcing the euro-only rule could deepen divisions rather than bridge them.
For now, the Serbian dinar remains a part of everyday life in parts of Kosovo, despite Pristina’s push for change.
