Cape Verde Foreign Reserves Cover Nine Months of Imports
The Bank of Cape Verde (BCV) reported a strong start to 2026, with the archipelago’s external accounts showing a favorable trend fueled by a booming tourism sector and increased port activity. According to the central bank’s latest Economic and Financial Indicators bulletin, the nation has accumulated enough foreign currency reserves to cover nine months of imports.
Foreign Reserves Reach Milestone
As of March 2026, Cape Verde’s net international reserves surged by 103.7 million euros, bringing the total stockpile to 1,168.2 million euros. This financial cushion is critical for the import-dependent nation, providing a security margin that far exceeds standard international benchmarks. The BCV confirmed that this current stock is sufficient to guarantee the purchase of goods and services estimated for the entirety of 2026.
Central bank analysts pointed to two primary engines driving this growth: a steady rise in international tourism demand and a spike in the re-export of fuel and provisions at the country’s strategic ports and airports.
Fiscal Surplus and Economic Cooling
While the external accounts are thriving, the nation’s fiscal surplus saw a decline compared to the previous year. The public accounts recorded a surplus of 1,389.2 million escudos (approximately 12.6 million euros) in the first quarter of 2026. This figure represents a drop from the 2,498.1 million escudos (22.7 million euros) surplus reported during the same period in 2025.
The bulletin also highlighted a “contraction” in credit to the broader economy. The BCV attributed this tightening to a general slowdown in national economic activity during the first three months of the year. Borrowers also faced a “slight increase” in interest rates and more stringent approval criteria from commercial lenders.
Public Sector Debt and Liquidity
The report detailed a shift in public sector financing, noting a decrease in the stock of outstanding Treasury bills and bonds. Simultaneously, an increase in government deposits contributed to a reduction in net credit to the public administrative sector. This indicates a more liquid position for the government despite the cooling of credit availability elsewhere in the economy.
Image: Pexels – Ana Marta Jorge
