Note: This currency has been replaced by the Euro.
Overview
The Escudo was the foreign currency of Portugal before the introduction of the Euro on January 1, 1999. The Escudo was taken out of circulation on February 28, 2002. The Escudo was partitioned into one hundred centavos.
Economy
The Portuguese economy underwent significant economic growth until the 1974 Carnation Revolution, which introduced a significant amount of economic turmoil within the country. Since this era, Portugal has been attempting to convert to a modern global economy.
Portugal’s economy has been shifting from a public consumption model to one that is heavily focused on exports, private investment, and the high-tech sector. Services have replaced traditional textile, cork, wood product, and beverage industries.
The majority of the business service and finance industries are focused in the Lisbon and Porto areas.
Portugal was one of the founding members of the Eurozone.
History
The Portuguese Escudo was introduced on May 22, 1911, replacing the Real at a rate of 1,000 Réis to 1 Escudo. The initial value of the Escudo was set at 675$00, the value of 1kg of gold.
After 1914, the value of the Escudo declined, and in 1928 it was fixed to the Pound at a value of 108$25 to 1 Pound.
Coins valued at 10, 20, and 50 centavos, and 1, 2, and 4 escudos were introduced into circulation between 1912 and 1922.
The first banknotes were issued between 1917 and 1925, at values of 50 centavos, and 1, 2 ½, 5, 10, 20, 50, 100, 500 and 1,000 escudos.
By 1926, only 20, 50, 100, 500 and 1,000 escudo notes were still in circulation.
In 1932, silver coins were introduced in values of 2 ½, 5, and 10 escudos. These coins were later replaced by equivalents in cupro-nickel, aluminum, bronze, and nickel-brass.
In 1942, and 5,000 escudo note was introduced, and in 1989, a 10,000 escudo note was issued.
High inflation rates in the 20th century effectively made the centavo worthless, and the coins were removed from circulation in the early 1990s.
