5 Escudos – Portugal

In 1963, Portugal's currency situation was defined by the Escudo, which operated under a tightly controlled and complex system emblematic of the authoritarian Estado Novo regime. The escudo was not a freely convertible currency and its value was maintained through a web of exchange controls, multiple exchange rates, and strict capital restrictions. The Banco de Portugal, under government direction, managed a fixed parity with the U.S. dollar (officially 28.75 Escudos to 1 USD), but this official rate was largely reserved for essential imports and strategic transactions. For most other international trade and travel, a less favorable "free market" rate applied, creating a de facto dual-currency environment.

This system served the regime's primary economic goals: protecting Portugal's limited gold and foreign exchange reserves, financing its colonial wars in Africa, and maintaining a stable facade for political purposes. The controls aimed to prevent capital flight, subsidize key industries, and manage a persistent structural trade deficit. However, it also led to significant distortions, including a thriving black market for foreign currency and limited integration with the global economy. The escudo's artificial stability masked underlying weaknesses, such as low industrialization, reliance on agricultural and colonial exports, and mounting military expenditures.

Overall, the 1963 currency regime reflected Portugal's insulated and stagnant economy under the Estado Novo. While it provided short-term stability, it hindered modernization and foreign investment. The rigid controls and economic strain of colonial conflicts would, over the next decade, contribute to the mounting pressures that culminated in the Carnation Revolution of 1974 and subsequent major monetary and economic reforms.