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The Serbian dinar is not officially "banned" in Kosovo, Prime Minister Albin Kurti told AFP on Wednesday, but he emphasised that only the euro is legal tender for commercial transactions. "This should not be seen as punishment but as formalisation of financial transactions," Kurti told AFP.  - 'Unlawful' - His remarks came as Serbia accused the Kosovo government of physically blocking a shipment of dinars at the border on Wednesday. 

Kosovo may be on the verge of a fresh crisis after the government threatened to ban the use of Serbian money this week, with a chorus of Western countries warning it could ignite a firestorm.Western governments have lambasted the move as inflammatory, warning the regulation would likely destabilise already tense relations between Serbs and the Pristina government. 

Kosovo said Wednesday that it will not immediately enforce a ban on the use of the Serbian dinar there after an outcry from Western governments.Western governments have lambasted the dinar ban as inflammatory, warning the regulation would likely upset local Serbs. 

Serbian forces are still gathered on the border with Kosovo, amid ongoing tensions and a spike of violence in the troubled country.

Serbian forces are still gathered on the border with Kosovo, amid ongoing tensions and a spike of violence in the troubled country.