What is Cape Verdean Escudo (CVE)?

Cape Verdean Escudo (CVE)

The Cape Verdean Escudo (CVE) serves as the primary medium for economic exchange in Cape Verde, a nation composed of ten volcanic islands. Introduced in 1914, the currency replaced the Portuguese escudo and has undergone several changes since its inception. The escudo is subdivided into 100 centavos, allowing for smaller transactions and making it more convenient for everyday use.

The currency is issued by the Bank of Cape Verde, which is responsible for maintaining its stability and regulating its supply. The exchange rate of the escudo has historically been influenced by the economic performance of the islands, which rely heavily on tourism, agriculture, and fishing. As a result, the CVE is often pegged to the Euro, providing a level of stability against fluctuations in the global market.

Coins of the Cape Verdean escudo come in various denominations, including 1, 5, 10, 20, 50 escudos, and 1, 2, 5 centavos, while banknotes are available in 200, 500, 1000, 2000, and 5000 escudo denominations. The design of the banknotes reflects the cultural and historical heritage of Cape Verde, featuring prominent figures and landscapes that represent the nation’s identity.

In practice, the CVE is used for all monetary transactions in Cape Verde, from local markets to international trade. Tourists visiting the islands can exchange their currencies for escudos at banks, exchange offices, and sometimes at hotels. The currency is essential for day-to-day living, including purchasing food, transportation, and other services.

Overall, the Cape Verdean Escudo plays a crucial role in the economy of Cape Verde, facilitating commerce and ensuring that residents and visitors can engage in the financial aspects of life in this unique archipelago. Its stability and regulation by the central bank are vital for economic growth and development in the region.