The escudo, abbreviated CVE, is the official currency of Cape Verde. It is denoted by a cifro (a symbol similar to the dollar sign, but with two vertical strokes instead of one) following the quantity. The currency is pegged to the euro at 110 dollars per euro.
Euros are often accepted in the tourist islands of Sal and Boa Vista, but you may get change in escudos.
All major currencies may be exchanged at the international airports of Sal and Praia. Banks in bigger towns will also exchange money. ATMs that accept Visa, MasterCard, and Maestro are also available in larger towns.
Credit cards will be accepted at high-end hotels. Other hotels will demand cash, but many mid-tier establishments will take euros at a reasonable conversion rate (slightly worse than the banks). Expect to pay in escudos for anything else.
Because the majority of products are imported, the cost of living ranges from modest to expensive. The expense of living on the island resorts of Boa Vista and Sal is often comparable to that of their Caribbean equivalents. The island of Santiago has the lowest cost of living.