Kosovo Coins & Currency

itsnotjustme

I wonder at what point Kosovo will have a new currency system?

Today the Euro is widely used. I think Serbian currency is also used in primarily Serb areas. Early on (1999+) the German Mark was widely used.

Obviously they are many years and much progress from being able to be an EU member and officially join the Euro crowd. Will the Euro remain the primary currency regardless? What are the down sides to using another Nation's--or block of Nations'--currency, other than lack of seigniorage?

newsman

I suspect they will try to get their own coins out as quickly as possible, since that's an important indicator of sovereignty, though Kosovo's independence is likely to be short-lived.

ColinCMR

Definitely going to be interesting

Doogy

My in-laws are leaving for Kosovo next weekend. They have been over there since the conflict ended; my father-in-law is a retired (from US practice) OB-GYN, but has extensive training in general surgery and my mother-in-law is a seminary trained minister. They like to joke that he heals the body, and she heals the soul. They work for a missions group called Christian Medical and Dental Association. He has been training doctors in the region about modern western medical practices, and they both love the country and people. They have also had friends at high levels in the government over the time that they have lived there. I know with the new announcement of independence, everyone is on pins and needles seeing what will happen next. I can certainly keep everyone informed if you're interested, as they intend to email me next week with the pulse of the people and their friends high up in the Kosovar government.

As far as the currency is concerned, I have no clue what will happen; however, i'm sure it will be easy for me to get any denomination if some are interested.

Doug

Sapyx

<< <i>Obviously they are many years and much progress from being able to be an EU member and officially join the Euro crowd. >>


The biggest obstacle there is that several EU members have secessionist movements of their own (eg Spain and Cyprus), and are understandably reluctant to officially recognise Kosovo's independence because Kosovo started out as a very similar secessionist movement, the KLA.


<< <i>Will the Euro remain the primary currency regardless? >>


Probably. Doogy is probably in a better position to know than me, but I don't think there's much in the way of revenue sources in Kosovo, as far as agriculture, mining or industry is concerned, so they don't have much of an economic base to build a strong economy of their own. Still, one could well have said the same thing about East Timor, and it wasn't too long after independence when East Timor started issuing coins.

As newsman said, the issuing of your own coinage is an ancient, time-honoured way of proclaiming to the world the fact of your independence, especially in that part of the world, so we might see some commemorative (fundraising) coins in the near future, but I don't think they've thought far enough ahead yet to even consider a name for any new unit of currency.


<< <i>What are the down sides to using another Nation's--or block of Nations'--currency, other than lack of seigniorage? >>


Lack of control, for one thing. The coin-issuing members of the EU have some influence over the ECB and euro monetary policy. Countries such as Kosovo have no such influence; if they've pegged their economic hopes on the euro, and the euro collapses, there's nothing they can do about it. Just like Ecuador has no control or influence over US monetary policy, despite their using US coins and notes.

itsnotjustme

I was listening to BBC News today, and money came up. Serbs in the North are concerned because their pay - from Serbis - in dinars may not be allowed to cross the new border. The article noted the euro use in the Albanian majority areas, and the dinar in the small Serb dominated north around Mitrovicha (sp?).