An Exchange Cooperation Agreement was recently signed between the Republics of Portugal and Cape Verde. This agreement, which had been under negotiation for some time, was presented by the two signatory countries as a corollary to the exemplary nature of Luso-Cape Verde relations, especially in the area of economic and financial cooperation, and as an instrument for strengthening bilateral economic ties, especially as regards the intensification of trade and investment flows. But it is also an important milestone in the framework of the CPLP, in the sense that its results may come to enhance other bilateral or multilateral agreements. The Agreement, signed in March this year, will only come into force within a maximum of three months from the date it is signed, by which time the Exchange Cooperation Agreement Commission, the entity responsible for defining and reviewing the operating conditions, as well as for managing the Agreement, should already be performing its duties. If the specific operating conditions are not yet known, which does not allow a more concrete analysis of its virtualities, however, the characteristics which define its philosophy may be identified in the text of the Agreement itself. A summary of Acordo de cooperação cambial entre Portugal e Cabo Verde (Agreement on Exchange Rate Co-operation between Portugal and Cape Verde), entitled Moeda une Portugal e Cabo Verde (Currency unites Portugal and Cape Verde), was published in Informação Lusófona (UCCLA), no. 6, April 1998, p. 2.
Estêvão, João. 1998. “Acordo de cooperação cambial entre Portugal e Cabo Verde”. Instituto Superior de Economia e Gestão – CEsA Brief papers nº 4-1998.
Working Paper 179/2020: Monetary Transitions in Cabo Verde: From the escudo zone to the exchange agreement with Portugal
Monetary Transitions in Cabo Verde: From the escudo zone to the exchange agreement with Portugal studies how, during the colonial period and within the framework of the monetary system of the Portuguese colonies, Cape Verde lived in a situation of relative monetary and exchange rate stability. After independence in 1975, the country underwent two monetary transitions: the first, immediately after independence and with the abandonment of parity with the Portuguese escudo; and the second, from 1998 onwards, following an exchange rate cooperation agreement with Portugal. During both transitions, the country was able to rebuild monetary and exchange rate stability, depending on how institutional and external stability factors were used in each of them. However, the second transition significantly affected the evolution of international trade and investment in Cape Verde, whose expansion resulted in strong growth in the economy and exports. This article analyses not only the conditions of monetary and exchange rate stability in the two transitions, but also the nature of the changes that occurred with the second transition. These changes translated into a trend of structural transformation and consolidation of the market economy in Cape Verde, paving the way for the good economic performance of recent decades.
Estêvão, João (2020). “Monetary transitions in Cabo Verde : from the escudo zone to the exchange agreement with Portugal”. Instituto Superior de Economia e Gestão – CEsA/ CSG – Documentos de Trabalho nº 179/2020.