Brazilian real

Brazilian real
real brasileiro (Portuguese)
Reais banknote of the latest series, announced February 2010. Issued on 13 December 2010.[1][2]
ISO 4217
Code	BRL
Number	986
Exponent	2
Denominations
Subunit
1/100	centavo
Plural	Reais
Symbol	R$
Banknotes
Freq. used	R$2, R$5, R$10, R$20, R$50, R$100
Rarely used	R$1 (discontinued in 2006)
Coins
Freq. used	5, 10, 25, 50 centavos, R$1
Rarely used	1 centavo (discontinued in 2006)
Demographics
User(s)	Brazil
Issuance
Central bank	Central Bank of Brazil
Website	www.bcb.gov.br
Printer	Casa da Moeda do Brasil
Website	www.casadamoeda.gov.br
Mint	Casa da Moeda do Brasil
Website	www.casadamoeda.gov.br
Valuation
Inflation	3.29% (2017)[3]
Source	Central Bank of Brazil, 2016
Method	CPI

The Brazilian real (Portuguese: real, pl. reais; sign: R$; code), is the official currency of Brazil. It is subdivided into 100 centavos. The Central Bank of Brazil is the central bank and the issuing authority.

The dollar-like sign (cifrão) is the currency's symbol (both historic and modern), and in all the other past Brazilian currencies, is officially written with two vertical strokes () rather than one.^[4] However Unicode considers the difference to be only a matter of font design, and does not have a separate code for the two-stroked version.^[5]

As of April 2016, the real is the nineteenth most traded currency in the world by value.^[6]

History

The modern real (Portuguese plural reais or English plural reals) was introduced on 1 July 1994, during the presidency of Itamar Franco, when Rubens Ricupero was the Minister of Finance, as part of a broader plan to stabilize the Brazilian economy, known as the Plano Real. The new currency replaced the short-lived cruzeiro real (CR$). The reform included the demonetisation of the cruzeiro real and required a massive banknote replacement.

At its introduction, the real was defined to be equal to 1 unidade real de valor (URV, "real value unit") a non-circulating currency unit. At the same time the URV was defined to be worth 2750 cruzeiros reais, which was the average exchange rate of the U.S. dollar to the cruzeiro real on that day. As a consequence, the real was worth exactly one U.S. dollar as it was introduced. Combined with all previous currency changes in the country's history, this reform made the new real equal to 2.75 × 10¹⁸ (2.75 quintillions) of Brazil's original "réis".

Soon after its introduction, the real unexpectedly gained value against the U.S. dollar, due to large capital inflows in late 1994 and 1995. During that period it attained its maximum dollar value ever, about US$1.20. Between 1996 and 1998 the exchange rate was tightly controlled by the Central Bank of Brazil, so that the real depreciated slowly and smoothly in relation to the dollar, dropping from near 1:1 to about 1.2:1 by the end of 1998. In January 1999 the deterioration of the international markets, disrupted by the Russian default, forced the Central Bank, under its new president Arminio Fraga, to float the exchange rate. This decision produced a major devaluation, to a rate of almost R$2 : US$1.^[7]

In the following years, the currency's value against the dollar followed an erratic but mostly downwards path from 1999 until late 2002, when the prospect of the election of leftist candidate Luiz Inácio Lula da Silva, considered a radical populist by sectors of the financial markets, prompted another currency crisis and a spike in inflation. Many Brazilians feared another default on government debts or a resumption of heterodox economic policies, and rushed to exchange their reais into tangible assets or foreign currencies. In October 2002 the exchange rate reached its historic low of almost R$4 per US$1. The exchange rate as of September 2015 was BRL 4.05 to USD 1.00, however it has since been in a gradual recovery period, reaching 3.0 BRL per USD by February 2017.

The crisis subsided once Lula took office, after he, his finance minister Antonio Palocci, and Arminio Fraga reaffirmed their intention to continue the orthodox macroeconomic policies of his predecessor (including inflation-targeting, primary fiscal surplus and floating exchange rate, as well as continued payments of the public debt). The value of the real in dollars continued to fluctuate but generally upwards, so that by 2005 the exchange was a little over R$2 : US$1. In May 2007, for the first time since 2001, the real became worth more than US$0.50 — even though the Central Bank, concerned about its effect on the Brazilian economy, had tried to keep it below that symbolic threshold.

Coins

First series (1994–1997)

Along with the first series of currency, coins were introduced in denominations of 1, 5, 10 and 50 centavos and 1 real; the 25 centavos piece soon followed. All were struck in stainless steel. The original 1-real coins dated 1994-1997 have been withdrawn from circulation since 31 December 1997; all other coins remain legal tender.

First series
Image	Value	Design
	1 centavo	Obverse: Head of Republic. Reverse: Large denomination flanked by linear patterns.
	5 centavos	Obverse: Head of Republic. Reverse: Large denomination flanked by linear patterns.
	10 centavos	Obverse: Head of Republic.. Reverse: Large denomination flanked by linear patterns.
	25 centavos	Obverse: Head of Republic.. Reverse: Large denomination intersected by wavy lines.
	50 centavos	Obverse: Head of Republic.. Reverse: Large denomination flanked by linear patterns.
	1 real	Obverse: Head of Republic.. Reverse: Large denomination flanked by linear patterns.

Second series (1998–present)

In 1998, a second series of coins was introduced. It featured copper-plated steel coins of 1 and 5 centavos, brass-plated steel coins of 10 and 25 centavos, a cupronickel 50 centavos coin, and a bi-coloured brass and cupronickel coin of 1 real. However, from 2002 onwards, steel was used for the 50 centavos coin and the central part of the 1 real coin.

In November 2005, the Central Bank discontinued the production of 1 centavo coins, but the existing ones continue to be legal tender. Retailers now generally round their prices to the next 5 or 10 centavos.

Second series
Image	Value	Design
	1 centavo	Obverse: The Southern Cross in right upper side. Reverse: Depicts Pedro Álvares Cabral, Portuguese sea captain and Brazil's discoverer, with a 16th-century Portuguese ship in the background.
	5 centavos	Obverse: The Southern Cross in right upper side. Reverse: Depicts Joaquim José da Silva Xavier (also known as Tiradentes), martyr of an early independence movement known as the Minas Conspiracy. In the background, a triangle, symbol of the movement, and a dove, symbol of peace and freedom.
	10 centavos	Obverse: The Southern Cross in right upper side. Reverse: Depicts Emperor Pedro I, Brazil's first monarch. In the background, the Emperor on a horse: a scene alluding to the proclamation of independence.
	25 centavos	Obverse: The Southern Cross in right upper side. Reverse: Depicts Field Marshal Deodoro da Fonseca, Brazil's first Republican president. The Republic's coat of arms is in the background.
	50 centavos	Obverse: The Southern Cross in right upper side. Reverse: Depicts José Paranhos, Jr., the Baron of Rio Branco, the country's most distinguished Minister of Foreign Affairs. In the background, image of the country with ripples expanding outwards, representing the development of Brazil's foreign policy and the expansion and demarcation of the national borders.
	1 real	Obverse: The Southern Cross in right upper side. Reverse: Outer ring depicts a sample of the marajoara art pattern. In the inner ring, the Efígie da República, symbol of the Republic.

Commemorative coins

Commemorative 1 real coins for the 2016 Summer Olympics and Paralympics Games in Rio de Janeiro. Left, allegory to Olympic boxing, right, allegory to Paralympic swimming.

The Brazilian Central Bank has also issued special commemorative versions of the 1 real coin on special occasions. These coins are legal tender and differ from the standard ones only on the reverse side.

Banknotes

First series (1994–2010)

In 1994, banknotes were introduced in denominations of 1, 5, 10, 50 and 100 reais. These were followed by 2 reais in 2000 and 20 reais in 2001. On 31 December 2005, BCB discontinued the production of the 1 real banknote.

Second series (2010–present)

On 3 February 2010, the Central Bank of Brazil announced a new series of the real banknotes which would begin to be released in April 2010. The new design added security enhancements in an attempt to reduce counterfeiting. The notes have different sizes according to their values to help vision-impaired people. The changes were made reflecting the growth of the Brazilian economy and the need for a stronger and safer currency. The new banknotes began to enter circulation in December 2010, coexisting with the older ones.^[9][10]

Commemorative banknotes

In April 2000, in commemoration of the 500th anniversary of the Portuguese arrival on Brazilian shores, the Brazilian Central Bank released a polymer 10 real banknote that circulates along with the other banknotes above. The Brazilian Mint printed 250 million of these notes, which at the time accounted for about half of the 10 real banknotes in circulation.

Obverse	Reverse	Value	Year	Material	Description
		10 reais	2000	Polymer	Obverse: Image of Pedro Álvares Cabral, discoverer of Brazil. Reverse: Stylized version of the map of Brazil, with pictures highlighting the ethnic and cultural plurality of the country.

Exchange rates

Most traded currencies by value
Currency distribution of global foreign exchange market turnover^[11]

Rank	Currency	ISO 4217 code (symbol)	% daily share (April 2016)
1	United States dollar	USD ($)	80.6%
2	Euro	EUR (€)	37.4%
3	Japanese yen	JPY (¥)	21.6%
4	Pound sterling	GBP (£)	12.8%
5	Australian dollar	AUD (A$)	6.9%
6	Canadian dollar	CAD (C$)	5.1%
7	Swiss franc	CHF (Fr)	4.8%
8	Renminbi	CNY (元)	4.0%
9	Swedish krona	SEK (kr)	2.2%
10	New Zealand dollar	NZD (NZ$)	2.1%
11	Mexican peso	MXN ($)	1.9%
12	Singapore dollar	SGD (S$)	1.8%
13	Hong Kong dollar	HKD (HK$)	1.7%
14	Norwegian krone	NOK (kr)	1.7%
15	South Korean won	KRW (₩)	1.7%
16	Turkish lira	TRY (₺)	1.4%
17	Russian ruble	RUB (₽)	1.1%
18	Indian rupee	INR (₹)	1.1%
19	Brazilian real	BRL (R$)	1.0%
20	South African rand	ZAR (R)	1.0%
Other			7.1%
Total[12]			200.0%

Historical exchange rate

Historical USD/BRL exchange rate with Lowest, Highest and Average rates

Historical USD/BRL exchange rate

Current exchange rates

See also

• Portuguese real
• Plano Real
• Economy of Brazil
• Central Bank of Brazil

References

External links

Wikimedia Commons has media related to Real.

• Brazil's Currency War
• Images of historic and modern Brazilian bank notes
• The Invention of the Real (This American Life)
• Historical banknotes of Brazil

Historical currencies of Brazil
Real Rs [-]  – 1942 Cruzeiro Cr$ / ₢ [-] 1942 – 1967 Cruzeiro novo NCr$ [-] 1967 – 1970 Cruzeiro Cr$ [BRB] 1970 – 1986 Cruzado Cz$ [BRC] 1986 – 1989 Cruzado novo NCz$ [BRN] 1989 – 1990 Cruzeiro Cr$ [BRE] 1990 – 1993 Cruzeiro real CR$ [BRR] 1993 – 1994 Real R$ [BRL] 1994 – present