Kosovo

Years

Targets and attainment

Classification

2000-23

formally province of Serbia, under UN administration (UN Mission in Kosovo, UNMIK) from June 1999 following war involving Serb forces and NATO bombing; 1999 use of DM (replaced by euro 2002) legalised, dinar remains legal tender but falls out of general use; Banking and Payments Authority set up to develop payments and banking systems, later bank supervision and regulation; strong remonetisation; new Constitutional Framework 2001 includes provisional institutions of self-government; elections to Assembly 2001, 2004; 2008 new government declares independence (not recognised by Serbia); 2008 central bank set up, with focus on financial development and stability; limited adverse effects from GFC 2008 (most banks foreign-owned, limited international integration except for high and continuing inflow of remittances); 2010 central bank legal powers extended; issues of fiscal control in context where no public debt securities existed before 2012 (first treasury bills); issue of appropriate level of forex reserves; efforts to develop emergency liquidity assistance framework; 2014 fiscal rule; ongoing work to strengthen financial supervision; 2018 some evidence of exchange rate overvaluation, but international reserves adequate; severe but short-lived effect from Covid-19; 2022 global commodity price rises; 2022 some continuing overvaluation, reserves a bit below adequate (on IMF metrics); statistical database largely adequate by end of period, reforms ongoing

use of another sovereign’s currency UASC