114-432: The Portuguese escudo was the currency of Portugal replacing the real on 22 May 1911 and was in use until the introduction of the euro on 1 January 2002. The escudo was subdivided into 100 centavos . The word escudo literally means shield ; like other coins with similar names, it depicts the coat of arms of the state. Amounts in escudos were written as escudos [REDACTED] centavos with
228-434: A legal tender and accepted by governments for taxes. However, the instability in the exchange rate between the two grew over the course of the 19th century, with the increases both in the supply of these metals, particularly silver, and in trade. The parallel use of both metals is called bimetallism , and the attempt to create a bimetallic standard where both gold and silver backed currency remained in circulation occupied
342-511: A commodity under the Commodity Exchange Act . There are also branded currencies, for example 'obligation' based stores of value, such as quasi-regulated BarterCard, Loyalty Points (Credit Cards, Airlines) or Game-Credits (MMO games) that are based on reputation of commercial products. Historically, pseudo-currencies have also included company scrip , a form of wages that could only be exchanged in company stores owned by
456-423: A country has control of its own currency, that control is exercised either by a central bank or by a Ministry of Finance . The institution that has control of monetary policy is referred to as the monetary authority. Monetary authorities have varying degrees of autonomy from the governments that create them. A monetary authority is created and supported by its sponsoring government, so independence can be reduced by
570-435: A freely convertible currency, domestic firms will have to compete fiercely with their foreign counterparts. The development of competition among them will affect the implementation effect of currency convertibility. In addition, microeconomics is a prerequisite for macroeconomic conditions. Since currency convertibility is the cross-border flow of goods and capital, it will have an impact on the macro economy. This requires that
684-554: A government ( taxes ), or government agencies (fees, fines). Others simply get traded for their economic value. The concept of a digital currency has arisen in recent years. Whether government-backed digital notes and coins (such as the digital renminbi in China, for example) will be successfully developed and implemented remains unknown. Digital currencies that are not issued by a government monetary authority , such as cryptocurrencies like Bitcoin , are different because their value
798-481: A local currency. Cape Verde Cape Verde ( / ˈ v ɜːr d ( i )/ , VURD( -ee) ) or Cabo Verde ( / ˌ k ɑː b oʊ ˈ v ɜːr d eɪ / KAH -boh VUR -day , / ˌ k æ b oʊ -/ KAB -oh - , local Portuguese: [ˈkabu ˈveɾdɨ] ), officially the Republic of Cabo Verde , is an island country and archipelagic state of West Africa in
912-490: A new coinage was introduced which circulated until replacement by the euro. It consisted of nickel-brass 1 [REDACTED] , 5 [REDACTED] and 10 [REDACTED] , cupro-nickel 20 [REDACTED] and 50 [REDACTED] , with bimetallic 100 [REDACTED] and 200 [REDACTED] introduced in 1989 and 1991. Coins in circulation at the time of the changeover to the euro were: Coins ceased to be exchangeable for euros on December 31, 2002. Another name for
1026-580: A number of international organizations. It also participates in most international conferences on economic and political issues. Since 2007, Cape Verde has a special partnership status with the EU , under the Cotonou Agreement , and might apply for special membership , in particular because the Cape Verdean escudo , the country's currency, is indexed to the euro . In 2011 Cape Verde ratified
1140-558: A significant impact on the generation of exchange rates. Currency convertibility is closely linked to economic development and finance. There are strict conditions for countries to achieve currency convertibility, which is a good way for countries to improve their economies. The currencies of some countries or regions in the world are freely convertible, such as the US dollar, Australian dollar and Japanese yen. The requirements for currency convertibility can be roughly divided into four parts: With
1254-591: A singular monetary system for all purchases and debts in the United States, public and private. Along with the power to coin money, the United States Congress has the concurrent power to restrain the circulation of money which is not issued under its own authority in order to protect and preserve the constitutional currency. It is a violation of federal law for individuals, or organizations to create private coin or currency systems to compete with
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#17327919296911368-471: A small regional territory. In the 10th century, the Song dynasty government began to circulate these notes amongst the traders in its monopolized salt industry. The Song government granted several shops the right to issue banknotes, and in the early 12th century the government finally took over these shops to produce state-issued currency. Yet the banknotes issued were still only locally and temporarily valid: it
1482-752: A specific country and a final letter denoting a specific monetary unit of account. Many currencies use a currency symbol . These are not subject to international standards and are not unique: the dollar sign in particular has many uses. Distinct from centrally controlled government-issued currencies, private decentralized trust-reduced networks support alternative currencies (such as Bitcoin and Ethereum's ether , which are classified as cryptocurrency since transference transactions are assured through cryptographic signatures validated by all users. With few exceptions , these currencies are not asset backed . The U.S. Commodity Futures Trading Commission has declared Bitcoin (and, by extension, similar products) to be
1596-569: A successful operation to put an end to a drug trafficking group which smuggled cocaine from Colombia to the Netherlands and Germany using the country as a reorder point. The operation took more than three years, being a secret operation during the first two years, and ended in 2010. In 2016, Cape Verdean Armed Forces were involved in the Monte Tchota massacre , a green-on-green incident that resulted in 11 deaths. The Cape Verde archipelago
1710-539: Is Santiago, which hosts the nation's capital, Praia, the principal urban agglomeration in the archipelago. Three of the Cape Verde islands, Sal, Boa Vista, and Maio, are fairly flat, sandy, and dry; the others are generally rockier with more vegetation. Geologically, the islands, covering a combined area of slightly over 4,033 square kilometres (1,557 square miles), are principally composed of igneous rocks , with volcanic structures and pyroclastic debris comprising
1824-432: Is a price at which two currencies can be exchanged against each other. This is used for trade between the two currency zones. Exchange rates can be classified as either floating or fixed . In the former, day-to-day movements in exchange rates are determined by the market; in the latter, governments intervene in the market to buy or sell their currency to balance supply and demand at a static exchange rate. In cases where
1938-571: Is called Cidade Velha ("Old City"), to distinguish it from a town of the same name on a different Cape Verdean island ( Ribeira Grande on the island of Santo Antão ). The original Ribeira Grande was the first permanent European settlement in the tropics . In the 16th century, the archipelago prospered from the Atlantic slave trade . Pirates occasionally attacked the Portuguese settlements. Francis Drake , an English privateer , twice sacked
2052-712: Is economic turmoil involving the national currency. An example of this is the Argentinian economic crisis of 2002 in which IOUs issued by local governments quickly took on some of the characteristics of local currencies. One of the best examples of a local currency is the original LETS currency, founded on Vancouver Island in the early 1980s. In 1982, the Canadian Central Bank 's lending rates ran up to 14% which drove chartered bank lending rates as high as 19%. The resulting currency and credit scarcity left island residents with few options other than to create
2166-719: Is in the Atlantic Ocean, approximately 570 kilometres (350 mi) off the western coast of the African continent, near Senegal, The Gambia, and Mauritania as well as part of the Macaronesia ecoregion . It lies between latitudes 14° and 18°N , and longitudes 22° and 26°W . The country is a horseshoe-shaped cluster of ten islands (nine inhabited) and eight islets, that constitute an area of 4033 km (1557 sq mi). The islands are spatially divided into two groups: The largest island, both in size and population,
2280-592: Is market-dependent and has no safety net . Various countries have expressed concern about the opportunities that cryptocurrencies create for illegal activities such as scams , ransomware ( extortion ), money laundering and terrorism . In 2014, the United States IRS advised that virtual currency is treated as property for federal income-tax purposes, and it provides examples of how long-standing tax principles applicable to transactions involving property apply to virtual currency. Originally, currency
2394-487: Is often outlawed by governments in order to preserve the legitimacy of the constitutional currency for the benefit of all citizens. For example, Article I, section 8, clause 5 of the United States Constitution delegates to Congress the power to coin money and to regulate the value thereof. This power was delegated to Congress in order to establish and preserve a uniform standard of value and to insure
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#17327919296912508-487: Is that a currency is a system of money in common use within a specific environment over time, especially for people in a nation state. Under this definition, the British Pound sterling (£), euros (€), Japanese yen (¥), and U.S. dollars (US$ ) are examples of (government-issued) fiat currencies . Currencies may act as stores of value and be traded between nations in foreign exchange markets , which determine
2622-676: Is today, the Macanese pataca . Timor-Leste adopted the Portuguese Timorese escudo whilst still a Portuguese colony, having earlier used the Portuguese Timor pataca . Portuguese India adopted the Portuguese Indian escudo for a brief time between 1958 and 1961 before Goa became a part of India ; prior to that, it used the Portuguese Indian rupia . The mintage period for the various denominations of
2736-466: Is too high or too low, which can easily trigger speculation and undermine the stability of macroeconomic and financial markets. Therefore, to maintain the level of exchange rate, a proper exchange rate regime is crucial. In economics, a local currency is a currency not backed by a national government and intended to trade only in a small area. Advocates such as Jane Jacobs argue that this enables an economically depressed region to pull itself up, by giving
2850-485: Is usually defined as terrain that receives less than 250 mm (9.8 in) of annual rainfall. Sal's total of 145 mm (5.7 in) confirms this classification. Most of the year's rain falls in September. Sal, Boa Vista, and Maio have a flat landscape and arid climate, whilst the other islands are generally rockier and have more vegetation. Because of the infrequent occurrence of rainfall, where not mountainous,
2964-538: The cifrão as the decimal separator (for example: 25 [REDACTED] 00 means 25.00 escudos, 100 [REDACTED] 50 means 100.50 escudos). Because of the conversion rate of 1,000 réis = 1 [REDACTED] , three decimal places were initially used ( 1 [REDACTED] = 1 [REDACTED] 000). The currency replaced by the escudo in 1911 was denominated in Portuguese reals (plural: réis ) and milréis worth 1,000 réis . The milréis
3078-544: The Age of Discovery , with João de Barros , Pedro Álvares Cabral , Bartolomeu Dias , Vasco da Gama , and Henry the Navigator . The last 100 [REDACTED] banknote depicted Fernando Pessoa , the famous Portuguese writer and poet. Conto was the unofficial multiple of the escudo: 1 conto meant 1,000 [REDACTED] , 2 contos meant 2,000 [REDACTED] and so on. The original expression
3192-564: The April 1974 revolution in Portugal , the PAIGC became an active political movement in Cape Verde. In December 1974, the PAIGC and Portugal signed an agreement providing for a transitional government composed of Portuguese and Cape Verdeans. On 30 June 1975, Cape Verdeans elected a National Assembly which received the instruments of independence from Portugal on 5 July 1975. Immediately following
3306-548: The Eocene era. Before the arrival of Europeans, the Cape Verde Islands were uninhabited. They were discovered by Genoese and Portuguese navigators around 1456. According to Portuguese official records, the first discoveries were made by Genoa-born António de Noli , who was afterwards appointed governor of Cape Verde by the Portuguese king Afonso V . Other navigators mentioned as contributing to discoveries on
3420-854: The Icelandic króna and the Japanese yen . Mauritania and Madagascar are the only remaining countries that have theoretical fractional units not based on the decimal system; instead, the Mauritanian ouguiya is in theory divided into 5 khoums , while the Malagasy ariary is theoretically divided into 5 iraimbilanja . In these countries, words like dollar or pound "were simply names for given weights of gold". Due to inflation khoums and iraimbilanja have in practice fallen into disuse. (See non-decimal currencies for other historic currencies with non-decimal divisions.) Subject to variation around
3534-736: The November 1980 coup in Guinea-Bissau , relations between Cape Verde and Guinea-Bissau became strained. Cape Verde abandoned its hope for unity with Guinea-Bissau and formed the African Party for the Independence of Cape Verde (PAICV). Problems have since been resolved and relations between the countries are good. The PAICV and its predecessor established a one-party system and ruled Cape Verde from independence until 1990. Responding to growing pressure for pluralistic democracy,
Portuguese escudo - Misplaced Pages Continue
3648-847: The Rome Statute of the International Criminal Court . In 2017 Cape Verde signed the UN treaty on the Prohibition of Nuclear Weapons . The judicial system consists of a Supreme Court of Justice – whose members are appointed by the president, the National Assembly, and the Board of the Judiciary ;– and regional courts. Separate courts hear civil, constitutional, and criminal cases. Appeals are to
3762-544: The Savage Isles . The Cape Verde archipelago was uninhabited until the 15th century, when Portuguese explorers discovered and colonized the islands, thus establishing the first European settlement in the tropics. Because the Cape Verde islands were conveniently located to play a role in the Atlantic slave trade , Cape Verde became economically prosperous during the 16th and 17th centuries, attracting merchants, privateers , and pirates . It declined economically in
3876-517: The cash form of a currency. Banknotes were initially mostly paper, but Australia's Commonwealth Scientific and Industrial Research Organisation developed a polymer currency in the 1980s; it went into circulation on the nation's bicentenary in 1988. Polymer banknotes had already been introduced in the Isle of Man in 1983. As of 2016, polymer currency is used in over 20 countries (over 40 if counting commemorative issues), and dramatically increases
3990-417: The real at the rate of 1,000 réis to 1 escudo . The term mil réis (thousand réis ) remained a colloquial synonym of escudo up to the 1990s. One million réis was called one conto de réis , or simply one conto . This expression passed on to the escudo, meaning one thousand escudos. The escudo's value was initially set at 675 [REDACTED] = 1 kg of gold. After 1914,
4104-564: The (then) capital Ribeira Grande in 1585 when it was a part of the Iberian Union . After a French attack in 1712, the town declined in importance relative to nearby Praia , which became the capital in 1770. The decline in the slave trade in the 19th century resulted in an economic crisis. Cape Verde's early prosperity slowly vanished. However, the islands' position astride mid-Atlantic shipping lanes made Cape Verde an ideal location for re-supplying ships. Because of its excellent harbour,
4218-562: The 19th century after the suppression of the Atlantic slave trade by the British Empire, and many of its inhabitants emigrated during that period. However, Cape Verde gradually recovered economically by becoming an important commercial center and useful stopover point along major shipping routes. Cape Verde became independent in 1975. Since the early 1990s, Cape Verde has been a stable representative democracy and has remained one of
4332-472: The 2016 parliamentary elections , taking back parliamentary majority after 15 year-rule of African Party for the Independence of Cape Verde (PAICV). In April 2021, the ruling center-right Movement for Democracy (MpD) of Prime Minister Ulisses Correia e Silva won the parliamentary election . In October 2021, opposition candidate and former prime minister, Jose Maria Neves of PAICV, won Cape Verde's presidential election. On 9 November 2021, Jose Maria Neves
4446-605: The 20th century made centavos essentially worthless by its end, with fractional value coins with values such as 50 centavos and 2 + 1 ⁄ 2 [REDACTED] eventually withdrawn from circulation in the 1990s. With the entry of Portugal in the Eurozone , the conversion rate to the euro was set at 200.482 [REDACTED] = €1. The escudo was used in the Portuguese mainland, the Azores and Madeira , with no distinction of coins or banknotes. In Portugal's African colonies,
4560-463: The 50 centavos coin was coroa (crown). Long after the 50 centavos coins disappeared, people still called the 2 + 1 ⁄ 2 [REDACTED] coins cinco coroas ("five crowns"). Also, people still referred to escudos at the time of the changeover in multiples of the older currency real (plural réis ). Many people called the 2 + 1 ⁄ 2 [REDACTED] coins dois e quinhentos (two and five-hundreds), referring to
4674-513: The Cape Verde Islands. These are referred to as Cape Verde-type hurricanes . These hurricanes can become very intense as they cross warm Atlantic waters away from Cape Verde. The average hurricane season has about two Cape Verde-type hurricanes, which are usually the largest and most intense storms of the season because they often have plenty of warm open ocean over which to develop before encountering land. The five largest Atlantic tropical cyclones on record have been Cape Verde-type hurricanes. Most of
Portuguese escudo - Misplaced Pages Continue
4788-471: The Cape Verde archipelago are Diogo Dias , Diogo Afonso, Venetian Alvise Cadamosto , and Diogo Gomes (who had accompanied António de Noli on his voyage of discovery, and who claimed to have been the first to land on the Cape Verdean island of Santiago, and the first to name that island). In 1462, Portuguese settlers arrived at Santiago and founded a settlement they called Ribeira Grande. Today it
4902-617: The National Assembly ;– MpD (36), PAICV (25), and the Cape Verdean Independent Democratic Union (UCID) (3). The two main political parties are PAICV and MpD. Movement for Democracy (MpD) ousted the ruling African Party for the Independence of Cape Verde (PAICV) for the first time in 15 years in the 2016 parliamentary election, at which time its leader, Ulisses Correia e Silva, became prime minister. Jorge Carlos Almeida Fonseca
5016-794: The PAICV called an emergency congress in February 1990 to discuss proposed constitutional changes to end one-party rule. Opposition groups came together to form the Movement for Democracy (MpD) in Praia in April 1990. The one-party state was abolished on 28 September 1990, and the first multi-party elections were held in January 1991. The MpD won a majority of the seats in the National Assembly, and MpD presidential candidate António Mascarenhas Monteiro defeated
5130-567: The PAICV's candidate with 73.5% of the votes. Legislative elections in December 1995 increased the MpD majority in the National Assembly. A February 1996 presidential election returned President Monteiro to office. Legislative elections in January 2001 returned power to the PAICV, with the PAICV holding 40 of the National Assembly seats, MpD 30, and Party for Democratic Convergence (PCD) and Labour and Solidarity Party (PTS) 1 each. In February 2001,
5244-525: The PAICV-supported presidential candidate Pedro Pires defeated former MpD leader Carlos Veiga by only 13 votes. President Pedro Pires was narrowly re-elected in 2006 elections . President Jorge Carlos Fonseca led the country after the 2011 Cape Verde presidential election and he was re-elected in the 2016 election . He was supported by the Movement for Democracy Party. MpD also won in
5358-748: The Supreme Court. The military of Cape Verde consists of the National Guard and the Coast Guard; 0.7% of the country's GDP was spent on the military in 2005. Having fought their only battles in the war for independence against Portugal between 1974 and 1975, the efforts of the Cape Verdean armed forces have turned to combating international drug trafficking. In 2007, together with the Cape Verdean Police , they carried out Operation Flying Launch ( Operacão Lancha Voadora ),
5472-689: The United States maintain embassies in Praia. Cape Verde maintains a vigorously active foreign policy, especially in Africa. Cape Verde is a founding member state of the Community of Portuguese Language Countries (CPLP), also known as the Lusophone Commonwealth, an international organization and political association of Lusophone nations across four continents, where Portuguese is an official language. Cape Verde has bilateral relations with some Lusophone nations and holds membership in
5586-634: The United States. At various times countries have either re-stamped foreign coins or used currency boards , issuing one note of currency for each note of a foreign government held, as Ecuador currently does. Each currency typically has a main currency unit (the dollar , for example, or the euro ) and a fractional unit, often defined as 1 ⁄ 100 of the main unit: 100 cents = 1 dollar , 100 centimes = 1 franc , 100 pence = 1 pound , although units of 1 ⁄ 10 or 1 ⁄ 1000 occasionally also occur. Some currencies do not have any smaller units at all, such as
5700-506: The air temperature is cooler than in Senegal, but the sea is warmer. Due to the relief of some islands, such as Santiago with its steep mountains, the islands can have orographically induced precipitation, allowing rich woods and luxuriant vegetation to grow where the humid air condenses soaking the plants, rocks, soil, logs, moss, etc. On the higher islands and somewhat wetter islands, exclusively in mountainous areas, like Santo Antão island,
5814-481: The base of towering mountains. Ocean cliffs have been formed by catastrophic debris landslides . Cape Verde's climate is milder than that of the African mainland because the surrounding sea moderates temperatures on the islands and cold Atlantic currents produce an arid atmosphere around the archipelago. Conversely, the islands do not receive the upwelling (cold streams) that affect the West African coast, so
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#17327919296915928-518: The basic principles of its government. The president is the head of state and is elected by popular vote for a five-year term. The prime minister is the head of government and proposes other ministers and secretaries of state. The prime minister is nominated by the National Assembly and appointed by the president. Members of the National Assembly are elected by popular vote for five-year terms. In 2016, three parties held seats in
6042-473: The basis of the two nations' independence movement. Moving its headquarters to Conakry , Guinea in 1960, the PAIGC began an armed rebellion against Portugal in 1961. Acts of sabotage eventually grew into a war in Portuguese Guinea that pitted 10,000 Soviet Bloc -supported PAIGC soldiers against 35,000 Portuguese and African troops. By 1972, the PAIGC controlled much of Portuguese Guinea despite
6156-526: The capital Praia is located (269,370), São Vicente (74,016), Santo Antão (36,632), Fogo (33,519) and Sal (33,347). The largest cities are Praia (137,868), Mindelo (69,013), Espargos (24,500) and Assomada (21,297). The country is named after the Cap-Vert peninsula, on the Senegalese coast. The name Cap-Vert , in turn, comes from the Portuguese language Cabo Verde ('green cape'),
6270-485: The central Atlantic Ocean, consisting of ten volcanic islands with a combined land area of about 4,033 square kilometres (1,557 sq mi). These islands lie between 600 and 850 kilometres (320 and 460 nautical miles) west of Cap-Vert , the westernmost point of continental Africa. The Cape Verde islands form part of the Macaronesia ecoregion , along with the Azores , the Canary Islands , Madeira and
6384-412: The changes in the international exchange rate. Fiscal policies , such as transfer payments, taxation ratios, and other factors, dominate the profitability of capital and economic development, and the ratio of national debt issuance to deficit determines the repayment capacity and credit rating of the country. Such policies determine the mechanism of linking domestic and foreign currencies and therefore have
6498-400: The circulating medium. Private banks and governments across the world followed Gresham's law : keeping the gold and silver they received but paying out in notes. This did not happen all around the world at the same time, but occurred sporadically, generally in times of war or financial crisis, beginning in the early 20th century and continuing across the world until the late 20th century, when
6612-412: The city of Mindelo , located on the island of São Vicente , became an important commercial centre during the 19th century. Diplomat Edmund Roberts visited Cape Verde in 1832. Cape Verde was the first stop of Charles Darwin 's voyage with HMS Beagle in 1832. With few natural resources and inadequate sustainable investment from the Portuguese, the citizens grew increasingly discontented with
6726-471: The climate is suitable for the development of dry monsoon forests, and laurel forests . Average temperatures range from 22 °C (72 °F) in February to 27 °C (80.6 °F) in September. Cape Verde is part of the Sahelian semi-arid belt, with nothing like the rainfall levels of nearby West Africa . It rains irregularly between August and October, with frequent brief heavy downpours. A desert
6840-600: The colonial masters, who refused to provide the local authorities with more autonomy. In 1951, Portugal changed Cape Verde's status from a colony to an overseas province in an attempt to blunt growing nationalism . In 1956, Amílcar Cabral and a group of fellow Cape Verdeans and Guineans organized (in Portuguese Guinea ) the clandestine African Party for the Independence of Guinea and Cape Verde (PAIGC). It demanded improvement in economic, social and political conditions in Cape Verde and Portuguese Guinea and formed
6954-1071: The correspondence 2 + 1 ⁄ 2 [REDACTED] = 2500 réis . Tostão (plural tostões ) is yet another multiple of real , with 1 tostão = 100 réis . The Casa da Moeda issued notes for 5, 10, and 20 centavos between 1917 and 1925 whilst, between 1913 and 1922, the Banco de Portugal introduced notes for 50 centavos, 1 [REDACTED] , 2 + 1 ⁄ 2 [REDACTED] , 5 [REDACTED] , 10 [REDACTED] , 20 [REDACTED] , 50 [REDACTED] , 100 [REDACTED] , 500 [REDACTED] and 1,000 [REDACTED] . 50 centavos and 1 [REDACTED] notes ceased production in 1920, followed by 2 + 1 ⁄ 2 [REDACTED] , 5 [REDACTED] and 10 [REDACTED] in 1925 and 1926. 5,000 [REDACTED] notes were introduced in 1942. The last 20 [REDACTED] and 50 [REDACTED] notes were printed dated 1978 and 1980, respectively, with 100 [REDACTED] notes being replaced by coins in 1989,
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#17327919296917068-448: The currencies used from the 15th century onwards to sell slaves. African currency is still notable for its variety, and in many places, various forms of barter still apply. The prevalence of metal coins possibly led to the metal itself being the store of value: first copper, then both silver and gold, and at one point also bronze. Today other non-precious metals are used for coins. Metals were mined, weighed, and stamped into coins. This
7182-425: The definition which focuses on the currency systems of countries. One can classify currencies into three monetary systems : fiat money , commodity money , and representative money , depending on what guarantees a currency's value (the economy at large vs. the government's precious metal reserves ). Some currencies function as legal tender in certain jurisdictions , or for specific purposes, such as payment to
7296-634: The demand for paper notes to fall to zero. The printing of paper money was also associated with wars, and financing of wars, and therefore regarded as part of maintaining a standing army . For these reasons, paper currency was held in suspicion and hostility in Europe and America. It was also addictive since the speculative profits of trade and capital creation were quite large. Major nations established mints to print money and mint coins, and branches of their treasury to collect taxes and hold gold and silver stock. At that time, both silver and gold were considered
7410-490: The efforts of inflationists . Governments at this point could use currency as an instrument of policy, printing paper currency such as the United States greenback , to pay for military expenditures. They could also set the terms at which they would redeem notes for specie, by limiting the amount of purchase, or the minimum amount that could be redeemed. By 1900, most of the industrializing nations were on some form of gold standard , with paper notes and silver coins constituting
7524-457: The employers. Modern token money , such as the tokens operated by local exchange trading systems (LETS), is a form of barter rather than being a true currency. The currency may be Internet-based and digital, for instance, Bitcoin is not tied to any specific country, or the IMF's SDR that is based on a basket of currencies (and assets held). Possession and sale of alternative forms of currencies
7638-452: The escudo was generally used up to independence, in the form of Banco Nacional Ultramarino and Banco de Angola banknotes (rather than those of the Bank of Portugal used in Portugal proper), with Portuguese and in some cases local coins circulating alongside: Of the above, only Cape Verde continues to use the escudo. In Macau , the currency during the colonial period was, as it
7752-421: The global capital inflows and outflows of countries around the world, and exchange rates will fluctuate accordingly. National policies The country's foreign trade, monetary and fiscal policies affect the exchange rate fluctuations. Foreign trade includes policies such as tariffs and import standards for commodity exports. The impact of monetary policy on the total amount and yield of money directly determines
7866-663: The gold escudo (worth 1.6 milréis or 1.600 [REDACTED] ) introduced in 1722 was different: 1 ⁄ 2 escudo through 1821, 2 escudos through 1789, and 4 escudos through 1799. The eight-escudo coin was only struck between 1722 and 1730. Between 1912 and 1916, silver 10, 20 and 50 centavos and 1 [REDACTED] coins were issued. Bronze 1 and 2 centavos and cupro-nickel 4 centavo coins were issued between 1917 and 1922. In 1920, bronze 5 centavos and cupro-nickel 10 and 20 centavo coins were introduced, followed, in 1924, by bronze 10 and 20 centavos and aluminium-bronze 50 centavos and 1 [REDACTED] coins. Aluminium bronze
7980-421: The humid mountain. Most rainfall precipitation is due to condensation of the ocean mist. In some islands, like Santiago, the wetter climate of the interior and the eastern coast contrasts with the drier one on the south/southwest coast. Praia, on the southeast coast, is the largest city on the island and the largest city and capital of the country. While most of Cape Verde receives little precipitation throughout
8094-491: The island of Fogo. The islands lie on a bathymetric swell known as the Cape Verde Rise . The Rise is one of the largest protuberances in the world's oceans, rising 2.2 kilometres (1.4 miles) in a semi-circular region of 1200 km (460 sq mi), associated with a rise of the geoid . Pico do Fogo , the largest active volcano in the region, erupted in 2014. It has an eight-kilometre-diameter (five-mile) caldera ,
8208-535: The landscape is so arid that less than two percent of it is arable. The archipelago can be divided into four broad ecological zones – arid, semiarid, subhumid and humid, according to altitude and average annual rainfall ranging from less than 100 millimetres (3.9 inches) in the arid areas of the coast as in the Deserto de Viana (67 millimetres (2.6 inches) in Sal Rei ) to more than 1,000 millimetres (39 inches) in
8322-711: The legislative or executive authority that creates it. Several countries can use the same name for their own separate currencies (for example, a dollar in Australia , Canada , and the United States ). By contrast, several countries can also use the same currency (for example, the euro or the CFA franc ), or one country can declare the currency of another country to be legal tender . For example, Panama and El Salvador have declared US currency to be legal tender, and from 1791 to 1857, Spanish dollars were legal tender in
8436-485: The life span of banknotes and reduces counterfeiting. The currency used is based on the concept of lex monetae ; that a sovereign state decides which currency it shall use. (See Fiat currency .) In 1978 the International Organization for Standardization published a system of three-digit alphabetic codes ( ISO 4217 ) to denote currencies. These codes are based on two initial letters allocated to
8550-445: The majority of the archipelago's total volume. The volcanic and plutonic rocks are distinctly basic; the archipelago is a soda-alkaline petrographic province, with a petrologic succession similar to that found in other Macaronesian islands. Magnetic anomalies identified in the vicinity of the archipelago indicate that the structures forming the islands date back 125–150 million years: the islands themselves date from 8 million (in
8664-434: The most developed and democratic countries in Africa. Lacking natural resources, its developing economy is mostly service-oriented, with a growing focus on tourism and foreign investment. Its population of around 596,000 (as of 2022) is of mostly of Sub-Saharan African and minor European heritage, and predominantly Catholic , reflecting the legacy of Portuguese rule. A sizeable Cape Verdean diaspora community exists across
8778-459: The most valuable and were used for large purchases, payment of the military, and backing of state activities. Units of account were often defined as the value of a particular type of gold coin. Silver coins were used for midsized transactions, and sometimes also defined a unit of account, while coins of copper or silver, or some mixture of them (see debasement ), might be used for everyday transactions. This system had been used in ancient India since
8892-522: The name Cape Verde for the archipelago and, since independence in 1975, for the country. In 2013, the Cape Verdean government determined that it would thenceforth use the Portuguese name Cabo Verde for official purposes, including at the United Nations , even when speaking or writing in English. The archipelago of modern-day Cape Verde was formed approximately 40–50 million years ago during
9006-492: The name that Portuguese explorers gave the cape in 1444, a few years before they came across the islands. On 24 October 2013, the country's delegation to the United Nations informed it that other countries should no longer use Cape Verde or any other translations of Cabo Verde as part of its official name: all countries should use Republic of Cabo Verde as the country's official name. Speakers of English have used
9120-434: The national economy be in a normal and orderly state, that is, there is no serious inflation and economic overheating. In addition, the government should use macro policies to make mature adjustments to deal with the impact of currency exchange on the economy. The maintainability of international balance of payments is the main performance of reasonable economic structure. Currency convertibility not only causes difficulties in
9234-420: The need to transport gold and silver, which was risky; it facilitated loans of gold or silver at interest, since the underlying specie (money in the form of gold or silver coins rather than notes) never left the possession of the lender until someone else redeemed the note; and it allowed a division of currency into credit- and specie-backed forms. It enabled the sale of investment in joint-stock companies and
9348-428: The official coinage and currency of the United States. Commonly a central bank has the exclusive power to issue all forms of currency, including coins and banknotes ( fiat money ), and to restrain the circulation alternative currencies for its own area of circulation (a country or group of countries); it regulates the production of currency by banks ( credit ) through monetary policy . An exchange rate
9462-546: The only reason affecting the exchange rate. The large number of international tourists and overseas students has resulted in the flow of services and goods at home and abroad. It also represents that the competitiveness of global goods and services directly affects the change of international exchange rates. Capital flows National currencies will be traded on international markets for investment purposes. Investment opportunities in each country attract other countries into investment programs, so that these foreign currencies become
9576-438: The people living there a medium of exchange that they can use to exchange services and locally produced goods (in a broader sense, this is the original purpose of all money). Opponents of this concept argue that local currency creates a barrier that can interfere with economies of scale and comparative advantage and that in some cases they can serve as a means of tax evasion . Local currencies can also come into being when there
9690-425: The presence of the Portuguese troops, but the organization did not attempt to disrupt Portuguese control in Cape Verde. Portuguese Guinea declared independence in 1973 and was granted de jure independence in 1974. A budding independence movement — originally led by Amílcar Cabral , assassinated in 1973 — passed on to his half-brother Luís Cabral and culminated in independence for the archipelago in 1975. Following
9804-590: The recovery of Phoenician trade in the 10th and 9th centuries BC that led to a return to prosperity, and the appearance of real coinage, possibly first in Anatolia with Croesus of Lydia and subsequently with the Greeks and Persians. In Africa, many forms of value store have been used, including beads, ingots, ivory , various forms of weapons, livestock, the manilla currency , shell money , and ochre and other earth oxides. The manilla rings of West Africa were one of
9918-503: The redemption of those shares in a paper. But there were also disadvantages. First, since a note has no intrinsic value, there was nothing to stop issuing authorities from printing more notes than they had specie to back them with. Second, because this increased the money supply, it increased inflationary pressures, a fact observed by David Hume in the 18th century. Thus paper money would often lead to an inflationary bubble, which could collapse if people began demanding hard money, causing
10032-481: The regime of floating fiat currencies came into force. One of the last countries to break away from the gold standard was the United States in 1971, an action which was known as the Nixon shock . No country has an enforceable gold standard or silver standard currency system. A banknote or a bill is a type of currency and it is commonly used as legal tender in many jurisdictions. Together with coins , banknotes make up
10146-428: The relative values of the different currencies. Currencies in this sense are either chosen by users or decreed by governments, and each type has limited boundaries of acceptance; i.e., legal tender laws may require a particular unit of account for payments to government agencies. Other definitions of the term currency appear in the respective synonymous articles: banknote , coin , and money . This article uses
10260-420: The reserves of the central banks of each country. The exchange rate mechanism, in which currencies are quoted continuously between countries, is based on foreign exchange markets in which currencies are invested by individuals and traded or speculated by central banks and investment institutions. In addition, changes in interest rates, capital market fluctuations and changes in investment opportunities will affect
10374-529: The rim of which is at an elevation of 1,600 metres (5,249 feet) and an interior cone that rises to 2,829 metres (9,281 feet) above sea level . The caldera resulted from subsidence, following the partial evacuation (eruption) of the magma chamber, along a cylindrical column from within the magma chamber (at a depth of 8 kilometres (5 miles)). Extensive salt flats are found on Sal and Maio. On Santiago, Santo Antão, and São Nicolau, arid slopes give way in places to sugarcane fields or banana plantations spread along
10488-405: The same year that the 10,000 [REDACTED] note was introduced. Banknotes in circulation at the time of the changeover to the euro were: The last series of escudo banknotes could be returned to the central bank Banco de Portugal and converted to euros until 28 February 2022. Escudo banknotes celebrated notable figures from the history of Portugal . The final banknote series featured
10602-619: The southeast. It is not known what was used as a currency for these exchanges, but it is thought that oxhide-shaped ingots of copper, produced in Cyprus , may have functioned as a currency. It is thought that the increase in piracy and raiding associated with the Bronze Age collapse , possibly produced by the Peoples of the Sea , brought the trading system of oxhide ingots to an end. It was only
10716-439: The supply-demand relationship of different currencies determines the exchange ratio between currencies. Trade in goods and services Through cost transfer, goods and services circulating in the country (such as hotels, tourism, catering, advertising, household services) will indirectly affect the trade cost of goods and services and the price of export trade. Therefore, services and goods involved in international trade are not
10830-432: The sustainability of international balance of payments but also affects the government's direct control over international economic transactions. To eliminate the foreign exchange shortage, the government needs adequate international reserves. The level of exchange rate is an important factor in maintaining exchange rate stability, both before and after currency convertibility. The exchange rate of freely convertible currency
10944-592: The time of the Mahajanapadas . The exact ratios between the values of the three metals varied greatly between different eras and places; for example, the opening of silver mines in the Harz mountains of central Europe made silver relatively less valuable, as did the flood of New World silver after the Spanish conquests . However, the rarity of gold consistently made it more valuable than silver, and likewise silver
11058-540: The value of the escudo fell, being fixed in 1928 at 108.25 [REDACTED] to £1 sterling . This was altered to 110 [REDACTED] to £1 stg in 1931. A new rate of 27.50 [REDACTED] escudos to the U.S. dollar was established in 1940, changing to 25 [REDACTED] in 1940 and 28.75 [REDACTED] in 1949. During World War II , escudos were heavily sought after by Nazi Germany, through Swiss banks, as foreign currency to make purchases to Portugal and other neutral nations. Inflation throughout
11172-410: The west) to 20 million years (in the east). The oldest exposed rocks occurred on Maio and the northern peninsula of Santiago and are 128–131 million-year-old pillow lavas. The first stage of volcanism in the islands began in the early Miocene , and reached its peak at the end of this period when the islands reached their maximum sizes. Historical volcanism (within human settlement) has been restricted to
11286-465: The world, especially in the United States and Portugal, considerably outnumbering the inhabitants on the islands. Cape Verde is a member state of the African Union . Cape Verde's official language is Portuguese. The recognized national language is Cape Verdean Creole , which is spoken by the vast majority of the population. As of the 2021 census the most populated islands were Santiago , where
11400-399: The world, local currency can be converted to another currency or vice versa with or without central bank/government intervention. Such conversions take place in the foreign exchange market . Based on the above restrictions or free and readily conversion features, currencies are classified as: According to the three aspects of trade in goods and services , capital flows and national policies,
11514-555: The year, the northeastern slopes of high mountains see significant rainfall due to orographic lift, especially in areas far from the sea. In some such areas this precipitation is sufficient to support a rainforest habitat, albeit one significantly affected by the islands' human presence. These umbria areas are identified as cool and moist. Cape Verde lies in the Cape Verde Islands dry forests ecoregion. Western Hemisphere-bound hurricanes often have their early beginnings near
11628-413: Was conto de réis , which means 'one count of réis ' and referred to one million réis . Since the escudo was worth 1,000 réis (the older currency), therefore one conto was the same as a thousand escudos. The expression remained in usage after the advent of the euro, albeit less often, meaning €5, roughly worth 1,000 [REDACTED] . Occasionally paus , literally meaning 'sticks',
11742-663: Was a form of receipt, representing grain stored in temple granaries in Sumer in ancient Mesopotamia and in Ancient Egypt . In this first stage of currency, metals were used as symbols to represent value stored in the form of commodities. This formed the basis of trade in the Fertile Crescent for over 1500 years. However, the collapse of the Near Eastern trading system pointed to a flaw: in an era where there
11856-454: Was also used to refer to the escudo (" Tens mil paus? " – 'Do you have 1,000 escudos/sticks?'). During the move from escudos to euros the Portuguese had a joke saying that they had lost three currencies: the escudo , the conto , and the pau . Currency A currency is a standardization of money in any form, in use or circulation as a medium of exchange , for example banknotes and coins . A more general definition
11970-559: Was consistently worth more than copper. In premodern China , the need for lending and for a medium of exchange that was less physically cumbersome than large numbers of copper coins led to the introduction of paper money , i.e. banknotes . Their introduction was a gradual process that lasted from the late Tang dynasty (618–907) into the Song dynasty (960–1279). It began as a means for merchants to exchange heavy coinage for receipts of deposit issued as promissory notes by wholesalers ' shops. These notes were valid for temporary use in
12084-480: Was created during the 7th–12th centuries on the basis of the expanding levels of circulation of a stable high-value currency (the dinar ). Innovations introduced by Muslim economists, traders and merchants include the earliest uses of credit , cheques , promissory notes , savings accounts , transaction accounts , loaning , trusts , exchange rates , the transfer of credit and debt , and banking institutions for loans and deposits . In Europe, paper currency
12198-768: Was elected president in August 2011 and re-elected in October 2016. He is also supported by the MpD. In November 2021, Cape Verde opened its first embassy in Nigeria. In 2013 then United States President Barack Obama said Cape Verde is "a real success story". Among other achievements, it has been recognized with the following assessments: Cape Verde follows a policy of nonalignment and seeks cooperative relations with all friendly states. Angola, Brazil, China, Libya, Cuba, France, Guinea-Bissau, Germany, Italy, Portugal, Spain, São Tomé and Príncipe, Senegal, Russia, Luxembourg, and
12312-418: Was equivalent to 2.0539 grams fine gold from 1688 to 1800, and 1.62585 g from 1854 to 1891. Gold escudos worth 1.6 milréis (or 1.600 [REDACTED] ; not to be confused with the 20th-century currency) were issued from 1722 to 1800 in denominations of 1 ⁄ 2 , 1, 2, 4 and 8 escudos . The escudo (gold) was again introduced on 22 May 1911, after the 1910 Republican revolution , to replace
12426-532: Was first introduced on a regular basis in Sweden in 1661 (although Washington Irving records an earlier emergency use of it, by the Spanish in a siege during the Conquest of Granada ). As Sweden was rich in copper, many copper coins were in circulation, but its relatively low value necessitated extraordinarily big coins, often weighing several kilograms. The advantages of paper currency were numerous: it reduced
12540-507: Was no place that was safe to store value, the value of a circulating medium could only be as sound as the forces that defended that store. A trade could only reach as far as the credibility of that military. By the late Bronze Age , however, a series of treaties had established safe passage for merchants around the Eastern Mediterranean , spreading from Minoan Crete and Mycenae in the northwest to Elam and Bahrain in
12654-423: Was not until the mid 13th century that a standard and uniform government issue of paper money became an acceptable nationwide currency. The already widespread methods of woodblock printing and then Bi Sheng 's movable type printing by the 11th century were the impetus for the mass production of paper money in premodern China. At around the same time in the medieval Islamic world , a vigorous monetary economy
12768-656: Was replaced with cupro-nickel in 1927. In 1932, silver coins were introduced for 2 + 1 ⁄ 2 [REDACTED] , 5 [REDACTED] and 10 [REDACTED] . The 2 + 1 ⁄ 2 [REDACTED] and 5 [REDACTED] were minted until 1951, with the 10 [REDACTED] minted until 1955 with a reduced silver content. In 1963, cupro-nickel 2 + 1 ⁄ 2 [REDACTED] and 5 [REDACTED] were introduced, followed by aluminium 10, bronze 20 and 50 centavos and 1 [REDACTED] in 1969. Cupro-nickel 10 [REDACTED] and 25 [REDACTED] were introduced in 1971 and 1977, respectively. In 1986,
12882-554: Was sworn in as the new President of Cape Verde . On 2 February 2024, Cape Verde became the third African country to be free of malaria . Cape Verde is a stable semi-presidential representative democratic republic . In 2020 it was the most democratic nation in Africa , ranking 2023 as 45th in the world, according to the electoral democracy score of the V-Dem Democracy indices . The constitution – adopted in 1980 and revised in 1992, 1995 and 1999 – defines
12996-633: Was to assure the individual accepting the coin that he was getting a certain known weight of precious metal. Coins could be counterfeited, but the existence of standard coins also created a new unit of account , which helped lead to banking . Archimedes' principle provided the next link: coins could now be easily tested for their fine weight of the metal, and thus the value of a coin could be determined, even if it had been shaved, debased or otherwise tampered with (see Numismatics ). Most major economies using coinage had several tiers of coins of different values, made of copper, silver, and gold. Gold coins were
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