100 Escudos (Amadeo de Souza-Cardoso) – Portugal

In 1989, Portugal's currency situation was characterized by its integration into the European Monetary System (EMS) and the ongoing struggle to stabilize the escudo after a period of high inflation and economic transformation. Following the 1974 Carnation Revolution, the country experienced significant political and economic turmoil, leading to rampant inflation, which peaked at nearly 30% in the mid-1980s. By the late 1980s, under a stabilization program and with its 1986 entry into the European Economic Community (EEC), Portugal was committed to aligning its economy with European partners. The escudo was part of the EMS Exchange Rate Mechanism (ERM), but within its wider fluctuation band of ±6%, reflecting the currency's relative fragility compared to core European currencies like the Deutsche Mark.

The primary focus for monetary authorities was the battle against inflation, which remained in double digits (around 12-13% in 1989), and defending the escudo's parity within the EMS. This required maintaining high interest rates and tight monetary policy, which posed a challenge to economic growth. The escudo faced periodic speculative pressures, leading to several negotiated devaluations within the EMS framework—notably in 1987 and again in 1990—to restore competitiveness and account for Portugal's higher inflation rate relative to its trading partners. These adjustments were seen as necessary steps in the gradual convergence process.

Overall, the 1989 currency landscape was one of managed transition. The escudo was not yet a strong or fully stable currency, but it was on a defined path toward European integration. The policies of the time, emphasizing disinflation and exchange rate stability, were foundational steps toward the ultimate goal of joining a future single European currency, a process that would culminate a decade later with Portugal's adoption of the euro in 1999.