The Kosovo Central Bank decision to make the Euro the only legal currency took effect on Monday but not in Serb-majority municipalities in the north, an N1 reporter in Mitrovica North said.

According to the reporter, the Serbian Dinar is still in use in shops, cafes and other places and the local population can withdraw cash in Serbian currency from Serbian state-owned Post Office Savings Bank ATMs.

The Central Bank of Kosovo issued a decree on January 17 making the Euro the only legal currency, effectively banning the Dinar. The Serbia-based Komercijalna Bank has closed down its branches and all other banks operate in Euro. Komercijalna was bought by the Slovenian NLB Bank which also has branches in Kosovo.

A large number of Kosovo Serbs get their salaries and pensions in Dinars. They can now withdraw their money from ATMs which only dispense Euro notes but have to pay commissions and exchange rate fees. The locals in the four Serb-majority northern municipalities are wondering how long the Post Office Savings Bank will stay, the reporter said.

The authorities in Pristina said they would allow a transition period for the change of currency but did not specify how long.