When we began production on a two-hour documentary shot between Serbia and Kosovo, we knew the biggest challenges would be filming across two territories, different administrations, and a complex political context. We did not expect that one of the biggest problems would be: paying the bills.
Ahead of us was a project that involved multi-day filming, the crew moving between Serbia and Kosovo, and cooperation with people and companies on both sides of the administrative line. When we found support for the film, our account had a budget paid in euros. However, we could only use the money after converting it into dinars, specifically at the bank where we have our account, at the bank's exchange rate.
Already with that first conversion, we lost part of the budget, which was carefully planned even without that. In documentary film production, every expense is allocated in advance and every percentage of the budget has its purpose, and then the first invoice from Kosovo arrived as well.
It was about accommodation and meals for a film crew of 10 to 12 people during four days of filming in the center of Pristina. Therefore, it was a basic expense without which the project could not have been realized. The invoice was in euros, which was expected since the euro is the official currency in Kosovo. The company that provided the service needed an IBAN account, as it was an international transaction.
This is where the problem arose.
Although goods, services, and people cross the administrative line between Serbia and Kosovo every day, the financial systems are not simply connected. Trade between the two markets takes place between different monetary systems, different banking procedures, and different administrative rules.
The solution to the entire situation was as follows: the entire movie budget first had to be converted from euros into dinars at the bank's exchange rate, and then the bank, on our behalf, used those dinars to buy euros and pay the invoice in Kosovo. Therefore, the same sum of money went through two conversions before reaching the recipient.
Since the deadline for each conversion and transaction can be up to five business days, the process took significantly longer than we had planned. The bank explained to us that this is a procedure resulting from decisions of the National Bank of Serbia and that everything is done in accordance with the law, thereby creating a paradox.
The legal and political reality creates a situation where business people and organizations must find a way to operate between two systems that are not simply compatible. Business practice requires cross-border transactions, while the administrative framework makes those same transactions more complex and expensive.
Starting February 1, 2024, the Central Bank of Kosovo introduced the euro as the only permitted currency for cash transactions in Kosovo, which effectively ended the use of the dinar in daily payment transactions. Although the Pristina administration announced that this decision does not mean the cessation of money transfers from Serbia or a ban on holding foreign currencies, the adaptation of various payments and financial flows to the new rules has opened up additional administrative questions.
This case highlights a broader problem that has existed for years: without a simple and predictable payment method, there is no simple trade. Differences in currencies, banking procedures, and invoice processing methods can slow down business operations and increase costs for companies operating across the administrative line.
The greatest burden of such procedures is not necessarily felt by large companies that have legal and financial teams dedicated to these issues. It poses a much greater problem for small and medium-sized enterprises, organizations, and individuals who do not have enough resources to deal with complex administrative obstacles on a daily basis.
This experience is not an isolated case. The problem lies not only in the currency itself, but also in the consequences that different financial systems have on daily business operations.
Even the civil sector cooperation between Serbia and Kosovo is burdened by these issues. A form arrives from the bank where you choose whether a transaction is a „donation“ or related to „Kosovo.“ But what if the answer is: both?
During the film production in Pristina, we were late with almost all payments or finished them at the very last minute. The problem was not that someone didn't want to pay or receive payment. The problem was the system that turned a simple business transaction into a multi-step process with additional costs and uncertain deadlines.
Currencies and banks may seem like a technical issue, but in practice they directly shape the possibility of trade. When a basic business transaction becomes an administrative challenge, the price is ultimately paid not only by companies, but also by all those who depend on their cooperation.
Authors: Mediatorroom