An important part of Banco de Portugal's international activity is cooperation with other central banks, in particular Portuguese-speaking countries, but also other emerging and developing countries.
This cooperation aims to meet the challenges resulting from the development, modernisation and consolidation of partner countries and institutions and may take different forms: technical assistance, meetings, multilateral projects, workshops, seminars, work visits, internships and scholarships.
Banco de Portugal publishes on a yearly basis the Annual Report on Cooperation disclosing the cooperation work undertaken in each year.
Cooperation with Portuguese-speaking countries is guided by a set of principles and recommendations agreed upon in 2016. This exercise has inspired the European System of Central Banks (ESCB) to draw up the document entitled “International Central Bank Cooperation: ESCB Best Practices” approved and published in 2017.
Macroeconomic monitoring of Portuguese-speaking countries
Banco de Portugal monitors the macroeconomic developments of Portuguese-speaking countries. In this field, it regularly publishes analyses of the economic environment and indicators on Portuguese-speaking countries and participates in the structures responsible for the operation of the exchange rate/economic cooperation agreements.
- Economic developments in Portuguese-speaking African countries and Timor-Leste, analysing economic conditions of these countries and their economic and financial relations with Portugal;
- #Lusofonia, containing aggregate and individual socioeconomic and financial indicators of the eight Portuguese-speaking countries.
Exchange rate/economic cooperation agreements
Banco de Portugal participates in the structures responsible for the operation of the Exchange Rate Cooperation Agreement between Portugal and Cabo Verde and the Economic Cooperation Agreement between Portugal and São Tomé and Príncipe, both in decision-making bodies (Agreement Committees) and technical units (Macroeconomic Monitoring Units).
Representatives from the respective ministries of Finance and Foreign Affairs and central banks are also part of these structures.
The Exchange Rate Cooperation Agreement between Portugal and Cabo Verde was established in 1998, with the objective of deepening the economic ties between both countries and contributing to the economic and financial stability of Cabo Verde. This agreement establishes a currency peg between the currencies of both countries and a short-term credit facility to strengthen Cabo Verde’s foreign exchange reserves, provided by the Portuguese Treasury. The sustainability of the regime relies on the authorities of Cabo Verde adopting an appropriate stance on macroeconomic management.
The Economic Cooperation Agreement between Portugal and São Tomé and Príncipe was signed in 2009, with the objective of strengthening the exchange rate, macroeconomic and financial stability of São Tomé and Príncipe and promoting the economic relations between both countries. This agreement establishes a limited credit facility to support the country’s balance of payments, provided by Portugal, and requires São Tomé and Príncipe to adopt and maintain an economic policy stance compatible with preserving macroeconomic and financial stability. This stability relies on the adoption of a currency peg with the euro by São Tomé and Príncipe.