Kosovo adopted the euro as its de facto legal tender in 2002[1] despite the territory not being a member of the Eurozone or the European Union.
However, wartime inflation and tensions with the Federal Republic of Yugoslavia severely discredited the Yugoslav dinar, and many in Kosovo preferred using and hoarding foreign currencies.
At the time, the most frequently used foreign currencies were the Albanian lek and German mark, although the U.S. dollar and Swiss franc were also widely used.
In the immediate post-conflict period, foreign currencies—especially the Deutsche Mark[5]—were widely used alongside the Yugoslav dinar in Kosovo.
[a][9] The Deutsche Bundesbank was not informed in advance, and did not send any additional coins and notes to Kosovo for the unofficial changeover.