Kosovo and the euro
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Kosovo adopted the euro as its de facto legal tender in 2002[1] despite the territory not being a member of the Eurozone or the European Union. This succeeded its use of German marks from 1999.[2][3][4]
Background
During the
Kosovo declared independence on 17 February 2008. As of 4 September 2020,
Monetary situation prior to 1999
Before the establishment of the
Introduction of the mark
In the immediate post-conflict period, foreign currencies – especially the Deutsche Mark[5] – were widely used alongside the Yugoslav dinar in Kosovo. In September 1999, UNMIK recognised the status quo with a regulation accepting the use of other currencies.[6][7][8] While the dinar was never officially withdrawn from circulation, its use was "not encouraged". The use of other currencies, mainly the Albanian lek, also continued.[a][9] The Deutsche Bundesbank was not informed in advance, and did not send any additional coins and notes to Kosovo for the unofficial changeover. But since there were no restrictions on the import and export of Deutsche Marks, and many Kosovars working abroad sent money home, it was possible to supply Kosovo with sufficient quantities of Deutsche Marks.
The Yugoslav dinar (and later Serbian dinar) continued to be widely used in Northern Kosovo and Serb enclaves throughout Kosovo.
Towards the euro
Like Germany, Kosovo switched to the euro on 1 January 2002. The Deutsche Mark remained legal tender in Kosovo until 1 March 2002.
The change to the euro was achieved in cooperation with the European Central Bank (ECB) and national banks in the Eurozone.[10] By December 2001, about 100 million euro in cash had been frontloaded to the Banking and Payments Authority of Kosovo.[11] Kosovo does not mint any coins of its own.
EU membership
Kosovo is a potential candidate for
See also
- Kosovo
- Euroization
- Montenegro and the euro
- Accession of Kosovo to the European Union
- Accession of Serbia to the European Union
Notes
- ^ The Deutsche Bundesbank estimated in September 1999 that the 2 billion Deutsche Marks were held in the former Yugoslavia. This would amount to more than 80 Marks per person.
References
- ^ European Central Bank. "The Euro outside European Union". www.ecb.europa.eu. Retrieved 14 December 2019.
- ^ "Kouchner Signs Regulation on Foreign Currency" (Press release). 2 September 1999. Archived from the original on 18 January 2012.
- ^ "European Commission – Enlargement – Kosovo – Economic profile – Enlargement". European Commission. 30 October 2010. Archived from the original on 7 July 2012. Retrieved 31 January 2012.
- ^ "Euro used as legal tender in non-EU nations – Business – International Herald Tribune – The New York Times". International Herald Tribune. 1 January 2007. Archived from the original on 10 December 2008. Retrieved 31 January 2012.
- ^ "Kosovo adopts Deutschmark". BBC. 3 September 1999. Retrieved 22 June 2013.
- UNMIK. 4 October 1999. Archived from the originalon 7 June 2011.
- ^ "Enlargement – Kosovo". European Commission. Retrieved 8 September 2012.
- ISBN 978-0-8213-4942-7.
- ^ Tagesspiegel (1999). Deutsche Währung wird auch im Kosovo offizielles Zahlungsmittel - die Bundesbank wurde nicht gefragt (in German), 1999-09-07.
- ^ Bevölkerung am 1. Januar(in German) (seit 2008), Eurostat, epp.eurostat.ec.europa.eu.
- ^ Michel Svetchine, Kosovo experience with euroization of its economy Archived 2015-09-23 at the Wayback Machine
- ^ a b "EU warns Montenegro over Euro". B92. 2007-10-10. Archived from the original on 2012-11-05. Retrieved 2011-09-09.
- ^ a b c "Montenegro heading for EU membership". 2007-10-24. Archived from the original on 2013-05-11. Retrieved 2013-02-19.
- ^ "EU to question Montenegro's use of euro". 2007-10-08. Retrieved 2013-02-19.
Bibliography
- Bogetic, Zeljko (2000). Official Dollarization: Current Experiences and Issues. Cato Journal, Vol.20, No.2 (Fall 2000).
- "Euro: A Force for Stability in Kosovo". balkaninsight.com. 26 February 2010. Retrieved 24 February 2013.
- NRC Handelsblad (1999). Kosovo krijgt douane en Duitse mark, 4 September 1999.
- Starr, Martha (2004). Monetary policy in post-conflict countries: Restoring credibility. American University, May 2004.
- Svetchine, Michel (2005). Kosovo Experience with Euroization of its Economy. Central Bank of Albania.
- Schön, Gerhard (2008). Euro Münzkatalog.