100 Escudos – Cape Verde

In 1990, the currency situation in Cape Verde was defined by the Escudo (CVE), which had been the nation's currency since independence from Portugal in 1975. The currency was managed by the Bank of Cape Verde (Banco de Cabo Verde), established in 1975, and was pegged to a basket of currencies. However, for practical purposes, it maintained a strong and stable fixed exchange rate with the Portuguese Escudo (PTE), a legacy of colonial ties and a crucial linkage for an economy heavily dependent on imports, remittances from a large diaspora in Portugal, and foreign aid.

This peg provided essential stability for the small, insular, and developing economy, which had limited natural resources and relied on services like tourism, shipping, and fisheries. The fixed exchange rate helped control inflation and facilitated predictable transactions for key sectors. However, it also meant Cape Verde's monetary policy was largely dictated by the need to maintain the peg, limiting the central bank's ability to use interest rates or money supply as independent tools for domestic economic management.

The year 1990 fell within a period of significant economic and political transition. Domestically, the one-party state was moving toward multiparty democracy (achieved in 1991), and economically, the government was beginning to implement structural adjustment programs in collaboration with the IMF and World Bank. While the currency peg remained firmly in place in 1990, these reforms would set the stage for future monetary policy shifts, including a later formal change in the peg from the Portuguese Escudo to the Euro in 1999, ensuring continued monetary stability within a changing geopolitical and economic landscape.