Cape Verde Escudo

Overview

The Cape Verde Escudo (CVE) is the official currency of Cape Verde. The $ symbol is typically used to separate decimals; for example, 20$00 indicates 20 Escudos.

The Cape Verde Escudo is pegged to the Euro at 110$265 Escudos = 1 Euro.

Economy

• Cape Verde's economy does not have sufficient resources to sustain itself.
• Service-based industries account for 73% of the GDP and play an important role in the economy.
• Since 1990 the economy has been growing at a steady pace.
• In 1994 and 1995 the country received +/- 50 million USD in foreign investments.
• Cape Verde is recognized as an average development country. It is part of the Small Island developing states.
• Agriculture forms 9% of the total GDP and industry 16.5%.
• Export products are fish, hides, shoes, garments, and fuel.
• Import products are industrial, fuels, foodstuffs, and transport equipment.
• 30% of the population is unemployed.
• Inflation is estimated at 4%.
• Top industries are garments, shoes, salt mining, fish processing, ship repair, beverages, and food.
• Cape Verde receives a lot of cooperation from Portugal to help its economy.

History

• In 1914, the Escudo replaced the Rei, with 1 Escudo = 1,000 Reis.
• Until 1975, the Escudo was valued at par with the Portuguese Escudo.
• In 1998, a pegged rate was established between the Cape Verde Escudo and the Portuguese Escudo at 1 Poretuguese Escudo = 0.55 CVE.
• After the Portuguese Escudo was replaced by the Euro, the Cape Verde Escudo was pegged to the Euro at 110$265 Escudos = 1 Euro.
• The third issue of banknotes was introduced in 1992.
• In 2005, the 200-escudo note was redesigned and distributed to celebrate 30 years of independence.