Currency and money transactions in Cape Verde

The local currency the Cape Verdean Escudos (CVE) has a fixed exchange rate with the Euro. 1 Euro is equivalent to 110.265 CVE. Euros are widely accepted throughout the major tourist centres and especially on the Island of Sal however on the street the exchange rate will be 1 Euro to 100 CVE. The only way to get the full exchange rate is to change your Euros in to CVE at the Bank. The bank charges a standard rate of around 5 Euro or 550 CVE and will exchange Euros and US Dollars. Banks are open from Monday to Friday between 08:00 and 15:00 and are situated at most airports, in the center of the main cities and commercial centres.

Advantages of Fully Fixed Exchange Rates

Price Stability: A fixed exchange rate system provides a high degree of price stability since fluctuations in the exchange rate are minimized. This stability can help control inflation and provide a predictable environment for businesses and consumers.

Trade Confidence: Businesses can plan for transactions without worrying about sudden currency value changes, making cross-border trade more predictable and manageable.

Reduced Exchange Rate Risk: Fixed exchange rates eliminate the currency risk associated with fluctuating exchange rates. This stability can be particularly beneficial for companies engaged in long-term contracts, investments, and trade.

Foreign Investment: A stable exchange rate can attract foreign investment. Investors may be more inclined to invest in a country with predictable currency values, reducing the risk associated with currency fluctuations.

Payment methods

Credit cards are accepted by a large number of hotels, restaurants and shops. However, there is a difference between the region and the different islands. So it is wiser not to reckon on it. That way you will never be in trouble. Credit cards can also be used at a cash machine. Bank cards with a Visa, Maestro, Cirrus or Mastercard logo are can be used at ATM’s. With each withdrawal of money, transaction costs are automatically deducted. It is a maximum of a few euros at a time. The ATM’s can be found at the major banks of the country (BCA and BCN). Travel checks are also accepted as a means of payment, but because of crossover costs it is less favorable compared to pinning or paying by a credit card.

Currency and money transactions in Cape Verde

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