Monetary transitions in Cabo Verde: from the escudo zone to the exchange agreement with Portugal
Joao Estevao
No 179, CEsA Working Papers from CEsA - Centre for African and Development Studies
Abstract:
During the colonial period and within the framework of the monetary system of the Portuguese colonies, Cabo Verde lived in a situation of relative monetary and exchange stability. After independence, in 1975, the country underwent two monetary transitions: the first, immediately after independence and with the abandonment of the exchange rate parity with the Portuguese escudo; and the second, from 1998 onwards, following an exchange cooperation agreement with Portugal. During both transitions, the country could rebuild monetary and exchange stability, as a result of the way in which institutional and external factors of stability were used in each of them. However, the second transition significantly affected the evolution of trade and international investments in Cabo Verde, whose expansion resulted in a strong growth of the economy and exports. This paper analyses not only the conditions of monetary and exchange stability in the two transitions, but also the nature of the changes that took place with the second transition. Those changes were reflected in a trend of structural transformation and consolidation of the market economy in Cabo Verde, paving the way to the good economic performance of the last few decades.
Date: 2020-06
New Economics Papers: this item is included in nep-his and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
https://cesa.rc.iseg.ulisboa.pt/RePEc/cav/cavwpp/wp179.pdf (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:cav:cavwpp:wp179
Access Statistics for this paper
More papers in CEsA Working Papers from CEsA - Centre for African and Development Studies CEsA - Centre for African and Development Studies, University of Lisbon, Rua Miguel Lupi 20, 1249-078 Lisboa, Portugal.
Bibliographic data for series maintained by Sónia da Silva Pina ( this e-mail address is bad, please contact ).