The Exchange Rate Cooperation Agreement between Portugal and Cabo Verde (ERCA), in place for more than two decades, is a success case that deserves a deeper analysis. This article describes the agreement, its main goals – promotion of macroeconomic and financial stability and enhancement of economic openness to the rest of the world – and their reach. Some of the challenges that can be anticipated are also discussed. The macroeconomic performance points to the fulfillment of the envisaged goals. Monetary policy, aiming to ensure price stability, turned out to be credible and inflation converged to levels close to the ones observed in the euro area. Trade openness also increased significantly, in the context of accelerated economic and per capita average income growth. Among future challenges, it’s worth mentioning the necessity to continue to promote sustainable economic growth, framed by balanced public and external accounts. To this aim, contribute not only budgetary consolidation measures but also structural reforms that enhance the investment in human and physical capital and the potential growth of the Cabo Verdean economy.