Cape Verde has just reached a turning point historical. For the first time, the country's net foreign exchange reserves have exceeded the symbolic threshold of one billion euros, reaching a judged level comfortable to guarantee the stability of the Cape Verdean escudo against the Euro, a The Bank of Cape Verde (BCV) announced on Thursday

As of December 11, these reserves stood precisely at 1,019.8 million euros. According to the central bank, this level is considered “adequate” to ensure the sustainability of the fixed exchange rate regime Which links the national currency to the euro, the central pillar of monetary policy Cape Verdean.

In its press release, BCV recalls that Official foreign exchange reserves include all external assets held by the country. These include foreign currencies — euros, dollars or yen —, debt instruments issued by other states, as well as assets liquids similar to strategic national savings. These resources provide an essential safety net for the economy.

Concretely, these reserves are mobilized in the context of the implementation of monetary and exchange rate policies. Elles allow the country to honor its international financial commitments, supporting imports and, above all, maintaining the confidence of investors and economic partners in the solidity of the system Cape Verdean financier.

BCV attributes this increase history to a combination of favorable factors. On the one hand, discipline of monetary policy contributed to strengthening the external position of country. On the other hand, the good dynamic of the tourism sector, a pillar of the Cape Verdean economy generated sustained foreign exchange inflows. To that In addition, there is an increase in foreign direct investment (FDI) and the increase in diaspora remittances, which play a key role in the macroeconomic balance.

In an international context marked by uncertainty and financial volatility, this crossing of the billion euros threshold thus appears to be a strong signal. It confirms the resilience of the economy Cape Verdean and strengthens the country's credibility in the management of its policies monetary and exchange rate.