Republic of Kosovo: Central Bank Transparency Code Review

This paper highlights a detailed Central Bank Transparency Code Review report for Republic of Kosovo. The Central Bank of Kosovo (CBK) prioritizes transparency in its communication by actively providing the public with accessible information regarding its economic assessments and overall strategy, aiming to foster understanding and trust within the Kosovo financial market. The CBK has been improving its communication, but there is a need to develop an institutional communication policy and a strategy document. The authorities should ensure that the CBK’s website explicitly communicates that Kosovo’s adoption of the euro constrains its ability to conduct independent monetary policy and to provide emergency liquidity assistance (ELA). The CBK recognizes the need to improve transparency in its foreign exchange reserve management and on the operationalization of ELA. The mission recommends improving transparency in describing the role of the CBK in macroprudential policy design and implementation. In order to strengthen its governance transparency framework, the CBK should place greater focus on risk management, prevention of conflicts of interests, and human resource disclosures.