Kosovo shuts 6 bank branches over use of Serbian dinar currency

PRISTINA, Kosovo: In a move that could raise tensions with neighboring Serbia, Kosovo closed six branches of a Serbia-licensed bank this week that continues issuing Serbian dinar currency.

The closing of the Postal Savings Bank followed a request by other financial institutions that had stopped transacting business in dinars.

On Feb. 1, the Kosovo government required areas dominated by the ethnic Serb minority to use the euro currency, and outlawed the use of the Serbian dinar.

Pristina temporarily postponed enforcing the ban on dinars for some three months due to concerns expressed by the European Union and the United States.

Even though Kosovo is not part of the EU, the euro is primarily used throughout the country.