The Cape Verde Escudo (CVE) is the official currency of Cape Verde, an island country located in the central Atlantic Ocean, off the western coast of Africa.
The currency is issued and managed by the Banco de Cabo Verde, which serves as the country’s central bank.
The symbol for the Cape Verde Escudo is “Esc” or “$” (with a context-specific usage to avoid confusion with other dollar-denominated currencies), and it is often abbreviated as “CVE.”
Subdivisions and Denominations
The Cape Verde Escudo is subdivided into 100 smaller units called centavos.
Coins are issued in denominations of 1, 5, 10, 20, 50, and 100 Escudos, while banknotes are available in denominations of 200, 500, 1,000, 2,000, and 5,000 Escudos.
Pegged Exchange Rate
The Cape Verde Escudo has a pegged exchange rate, which means its value is fixed relative to another currency, in this case, the Euro.
The pegged exchange rate helps maintain stability in the country’s economy, as it reduces exchange rate risk and promotes trade and investment.
The peg also helps anchor inflation expectations and contributes to price stability in the country.
Economy and Challenges
Cape Verde has a small, open economy that is largely driven by tourism, remittances, and foreign aid.
The country has limited natural resources and relies heavily on imports to meet its needs, particularly for food and energy.
Cape Verde has made significant progress in terms of economic development and poverty reduction in recent years, but it continues to face challenges related to unemployment, income inequality, and vulnerability to external shocks, such as natural disasters or fluctuations in global commodity prices.
Summary
In summary, the Cape Verde Escudo is the official currency of Cape Verde and is managed by the Banco de Cabo Verde.
It is subdivided into smaller units called centavos and is issued in various banknote and coin denominations.
The Cape Verde Escudo has a pegged exchange rate to the Euro, which contributes to economic stability. Cape Verde’s economy is driven by tourism, remittances, and foreign aid, and the country faces ongoing challenges related to unemployment, income inequality, and vulnerability to external shocks.