What Is CVE?
CVE is the ISO 4217 currency code for the Cape Verde escudo, the official national currency of Cape Verde. The Cape Verde Escudo (CVE) subunit is called the centavo. The dollar symbol ($) is used in lieu of a decimal point. Therefore, 20 escudo is written as 20$00. The Banco de Cabo Verde issues the country's currency. It mints coins in 1, 5, 10, 20, 50 and 100 denominations and prints banknotes in 100, 200, 500, 1,000, 2,000, 2,500 and 5,000 denominations.
Cape Verde is a former Portuguese colony. The CVE replaced the former national currency, the Cape Verde real, which was equivalent to the Portuguese real. Portugal has since become a member of the European Union and adopted the euro as its currency. Today the Cape Verde escudo is pegged to the euro.
The Economy of Cape Verde
Cape Verde is considered a nation of average development. It is part of the Small Island developing states. According to Oanda, a currency data provider, Cape Verde's economy lacks sufficient resources to sustain itself. The economy is mostly based on service industries, which represent approximately 73% of the GDP. The economy has been growing steadily and, in 1994 and 1995, the country received 50 million USD in foreign investments.
With respect to industry, according to Oanda, agriculture represents 9% of the total GDP, and industry represents 16.5% of the total GDP. The main export products are fish, hide, shoes, garments and fuel. The main import products are industrial, fuels, foodstuffs, and transport equipment. Top industries are garments, shoes, salt mining, fish processing, ship repair, beverages, and food. The proportion of unemployed is high at 30% of the population. Inflation is estimated at 4%. Portugal provides Cape Verde with a lot of resources to boost its economy.
The History of the Cape Verde Escudo
The escudo replaced the Rei in 1914. One Escudo = 1,000 Reis. The escudo was valued the same as the Portuguese Escudo. In 1998, the CVE was pegged to the Portuguese Escudo at 1 Portuguese Escudo = 0.55 CVE. When the Portuguese escudo was replaced by the euro, the CVE was pegged to the Euro at 110$265 Escudos = 1 Euro. In 1992, a third round of banknotes was issued and, in 2005, the 200-escudo note was redesigned and distributed in celebration of 30 years of independence. The exchange rate was $10 to 952.43 CSV as of June 2018.