About the AUD/CVE rate
The AUD/CVE rate is how many CVE one Australian dollar buys. It moves constantly with interest-rate expectations, commodity prices and global risk sentiment - see what moves the rate. Tradergy shows the mid-market reference rate and does not forecast where it’s heading. For the 52-week highs and lows and a daily table, see the AUD/CVE rate history.
The other directions of this rate: the reverse rate, CVE → AUD, is on the receiving Cape Verdean escudo view, and sending Australian dollars to Cape Verde is covered on the AUD → CVE transfer page. Every AUD pair sits on the convert hub, and to work in more than one currency at once there is the currency converter.
What Portugal actually promised Cape Verde
Cape Verde's peg exists because two governments signed for it, and the document can be read. The Exchange Cooperation Agreement between the Portuguese Republic and the Republic of Cape Verde was signed at Cidade da Praia on 13 March 1998 and approved by Decree 24/98, published in Portugal's official gazette that July. Its first article establishes that Cape Verde's national currency is linked to Portugal's by a fixed parity relationship. Its second article is Portugal's guarantee of convertibility.
What the treaty conspicuously does not contain is a number. Its protocol left the parity to the Exchange Cooperation Agreement Commission, which was required at its first meeting to set the date the agreement entered into force and to fix the parity officially. The euro-era figure that resulted has held since 1999, at 110.265 escudos to the euro.
The third article is the part that gives the guarantee teeth. Portugal places a credit facility at Cape Verde's disposal to reinforce its exchange reserves, and the accompanying protocol fixes the line at 5,500 million Portuguese escudos, capable of being raised to 9,000 million if the Commission finds that Cape Verde has met the objectives of its macroeconomic programme and Portugal is satisfied with the guarantees offered.
Support of that kind comes with conditions attached, and they are written down. Portugal reserves the right to suspend the credit line, on the Commission's proposal, where the agreement or the conditions governing use of the facility are not complied with. The agreement itself runs for an initial four years and renews automatically for further four-year periods. Alongside it the Banco de Cabo Verde protects the arrangement from its own side, targeting international reserves in a range of five to five and a half months of prospective imports.
Sources: Diário da República, Decreto n.º 24/98 approving the Exchange Cooperation Agreement between Portugal and Cape Verde, 15 July 1998 · International Monetary Fund, Cabo Verde third review under the Policy Coordination Instrument (Country Report No. 21/71) · International Monetary Fund, Cabo Verde third review under the Extended Credit Facility (Country Report No. 24/9)