The currency of Cape Verde is the Cape Verdean Escudo (CVE). The escudo is subdivided into 100 centavos and was established in 1914 when Cape Verde was still a Portuguese colony. It replaced the Portuguese escudo at par. The Cape Verdean escudo is crucial for the country's economy, which is largely driven by services, tourism, and remittances from the Cape Verdean diaspora. The Central Bank of Cape Verde (Banco de Cabo Verde) is responsible for issuing the currency and overseeing monetary policy. Due to economic factors and tourism, the escudo tends to experience fluctuations against major currencies such as the euro and the US dollar.