Kosovo and the euro
Before Kosovo declared independence in 2008, Kosovo unilaterally adopted the euro as its currency in 2002 when it was a United Nations mandate; although, it is not an official eurozone member.
During the disintegration of Yugoslavia in the 1990s Kosovo unsuccessfully attempted to gain independence, and in 1998-1999 the situation escalated with the Kosovo War.
Kosovo declared independence on 17 February 2008. As of 27 February 2017, 111 out of 193 (57.5%) United Nations member states have formally recognised the Republic of Kosovo. Notably, 23 out of 28 (82%) member states of the European Union and 24 out of 28 (86%) member states of NATO have recognised Kosovo. Serbia refuses to recognise it.
Before the establishment of UNMIK, Kosovo (as part of Serbia) was bound to Yugoslav monetary policy, and the Yugoslav dinar. However, war-time inflation and tensions with the Federal Republic of Yugoslavia had severely discredited the Yugoslav dinar. As a result, many preferred to use and hoard foreign currencies instead of relying on the dinar. The most frequently used foreign currency was the German mark, although the U.S. dollar and Swiss franc were also widely used.
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