Currency in Cape Verde

Managing your money effectively while living and working abroad can be challenging, but there are several steps you can take to ensure that your finances are in order.

By following these tips and managing your money effectively, you can reduce financial stress and enjoy your experience living or doing business in Cape Verde.

How is Cape Verde's economy

Cape Verde's economy is small and open, with a strong focus on tourism and services. It has undergone significant economic growth in recent years, largely due to the development of the tourism industry. In addition to tourism, Cape Verde's economy is also based on trade and remittances from emigrants. Despite the progress, the country still faces challenges in areas such as unemployment, income inequality and infrastructure development.

Tourism is the main driver of Cape Verde's economy, with the industry contributing around 25% of the country's GDP. The country has a diverse range of tourism offerings, including beaches, hiking, diving, and cultural attractions. The government has made efforts to diversify the country's tourism offerings and attract more high-end tourists, with some success.

Remittances from emigrants also play a significant role in Cape Verde's economy, representing around 20% of GDP. Many Cape Verdeans have emigrated to other countries, particularly Portugal and the United States, and they often send money back to support their families and communities.

The country has also developed a growing trade sector and exports agricultural goods like bananas, vegetables, and fruits as well as fish and seafood. They have also developed some light industries such as textiles, and have had some success in attracting foreign investment for their offshore business services and information technology industries.

Cape Verde has made progress in reducing poverty and increasing economic growth, but challenges remains. Unemployment, particularly among young people, remains high, and income inequality is still a problem. The country also needs to invest in infrastructure development, particularly in areas such as transportation and energy, to support its economic growth.

Overall, Cape Verde has made significant progress in developing its economy, but challenges remain, particularly in areas such as unemployment, income inequality and infrastructure development. The government is working on policies to address these issues and to continue the country's economic growth.

Managing your finances in Cape Verde

Here we list some key points for expats and businesses to consider when managing financial dealings in Cape Verde:

1. Understand Cape Verdean escudo currency exchange rates: Exchange rates can have a big impact on your finances, so it is important to keep an eye on the CVE exchange rate and consider using a currency exchange service or a credit card that does not charge foreign transaction fees to get the best exchange rate.

2. Use a local Cape Verdean escudo bank account: A local CVE bank account can make it easier for you to manage your finances and pay bills while you are in Cape Verde. It may also be more convenient to use a local CVE bank account to make purchases and withdraw cash.

3. Research local laws and regulations: It is important to understand the local laws and regulations that apply to financial transactions in Cape Verde. This can help you avoid legal issues and ensure that you are complying with local requirements.

4. Consider the tax implications: It is important to understand the tax implications of living or doing business in Cape Verde. This can help you plan your finances and ensure that you are paying the correct amount of tax.

5. Seek financial advice: If you are unsure of how to manage your finances in Cape Verde, it is a good idea to seek the advice of a financial professional who is familiar with the local financial system. This can help you make informed decisions and avoid financial pitfalls.