UNMIK/PR/40

Press Release

02 September 1999

KOUCHNER SIGNS REGULATION ON FOREIGN CURRENCY

Pristina - Bernard Kouchner, Special Representative of the Secretary General, today signed a regulation allowing the use of foreign currency for payments and contracts in Kosovo.
 
"This is an important first step towards the creation of functioning banking, payments and fiscal systems in Kosovo," said Joly Dixon, Deputy Special Representive for Economic Reconstruction and Development. "The dinar is the currency of all of the Federal Republic of Yugoslavia. This regulation does not impose the use of Deutsche Mark (DM). However, it recognizes that the DM has been the preferred currency in Kosovo for some time. It is now necessary to put this on a firm legal basis."

Residents of Kosovo have long been conducting business using foreign currency, particularly in marks. With the signing of the regulation, residents will have no legal restrictions for the possession or use of any foreign currency.

Obligatory payments to authorities, such as customs duties, taxes and fines, will also be paid in marks. Anyone wishing to make such payments in other currencies, such as dinars, will be allowed to do so, but an administrative fee will be levied to cover administrative and handling costs.
 
The United Nations Interim Administration in Kosovo (UNMIK) will keep its budgets and accounts in marks. UNMIK will continue to accept payment in dinars or any other currency in wide circulation, such as US dollars or Swiss francs, Dixon said. However, a fee will be charged to defray the cost  for using multiple currencies.

Under the regulation, the YUD retains its legal status and will continue to be used to the extent that businesses and people in Kosovo so desire. Dixon said UNMIK is not considering creating or issuing a separate currency for Kosovo. 
For more information: Scott Brown (+381) 38.500223 ext 4189, Rutger Wissels (+381) 38.500223 ext 4187