The United Nations in Kosovo has announced that the main currency in the province is to be the German mark, replacing the Yugoslav dinar.

Officials said the dinar remained legal but its use was not being encouraged.

According to the UN, the decision -- taken without consulting Yugoslavia -- merely formalised the existing situation, with marks already in wide circulation.

Other western currencies would continue to be acceptable.

Correspondents say the adoption of the mark could raise questions about Kosovo's continued status as part of Yugoslavia.