Brazilian real
The Brazilian real 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 real replaced the Brazilian cruzeiro in 1994.
As of April 2016, the real is the nineteenth most traded currency in the world by value.
History
The modern real was introduced on 1 July 1994, during the presidency of Itamar Franco, when Rubens Ricupero was the Minister of 'Fazenda'—Brazilian nomenclature for 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. 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 a non-circulating currency unit. At the same time the URV was defined to be worth 2,750 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 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.
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.
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. 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. Lula started his government in 01/01/2003 with an exchange rate of 1USD = 3.52BRL and finished it in 12/31/2010 with an exchange rate of 1USD=1.66BRL.
The exchange rate as of September 2015 was BRL 4.05 to US$1.00. After a period of gradual recover, it reached 3.0 BRL per US dollar by February 2017.
Jair Bolsonaro's tenure, initially welcomed with enthusiasm by the financial markets, started with USD1=BRL3.86. Fueled by meager results of the economy, quick disenchantment followed, resulting in lack of foreign investments and real's strong depreciation. In May, 13th, 2020, in the apex of the coronavirus crisis, which deeply affected Brazil, the real reached a historical low against the US dollar, being negotiated at 1USD=5.90BRL.
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 was soon followed. All were struck in stainless steel. The original 1-real coins were demonetized on 23 December 2003; all other coins remain legal tender.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 the 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.
Commemorative coins
The Brazilian Central Bank has also issued special commemorative versions of some coins on special occasions. These coins are legal tender and differ from the standard ones only on their reverse side.| Image | Value | Details |
| 10 and 25 centavos | Release date: 31 May 1995 Occasion: The 50th anniversary of the Food and Agriculture Organization Units produced: 1 million for each design Reverse: The 10 centavos coin depicts hands offering a plant shoot with folious ramifications, and the 25 centavos coin depicts crop cultivation. Both coins contain the inscriptions "FAO—1945/1995" and "alimentos para todos". | |
| 1 real | Release date: 10 December 1998 Occasion: The 50th anniversary of the Universal Declaration of Human Rights Units produced: 600 thousand Reverse: The official logo of the commemorations; in bas-relief, a human figure. In the outer ring, the inscriptions "Declaração Universal dos Direitos Humanos" and "Cinqüentenário". | |
| 1 real | Release date: 12 September 2002 Occasion: The 100th birth anniversary of Brazilian former president Juscelino Kubitschek Units produced: 50 million Reverse: A face portrait of Kubitschek. Vertically, the inscription "Centenário Juscelino Kubitschek". In the outer ring, images alluding to the columns of the Alvorada Palace, the Presidential residence in Brasília, the city that he decided would be built. | |
| 1 real | Release date: 23 September 2005 Occasion: The 40th anniversary of the foundation of the Central Bank of Brazil Units produced: 40 million Reverse: Image of the trademark Central Bank building, inspired in the official logo developed for the commemorations. In the outer ring, the inscriptions "Banco Central do Brasil" and "1965 40 anos 2005". | |
| 1 real | Release date: 13 August 2012 Occasion: The Olympic Flag Handover for the Rio 2016 Summer Olympics Units produced: 2 million Reverse: The Olympic Flag in a pole above the official logo of the Games of the XXXI Olympiad. In the outer ring, the inscriptions "Entrega da Bandeira Olímpica" and "Londres 2012—Rio 2016" | |
| 1 real | Release dates: 28 November 2014, 17 April 2015, 7 August 2015, 19 February 2016 Occasion: 2016 Summer Olympics Units produced: 20 million for each design Reverse: Sixteen coin designs, representing athletics, swimming, paralympic triathlon, golf, basketball, sailing, paralympic canoeing, rugby, football, volleyball, paralympic athletics, judo, boxing, paralympic swimming, and each mascot of the 2016 Summer Olympics and Paralympics. | |
| 1 real | Release date: 30 March 2015 Occasion: The 50th anniversary of the foundation of the Central Bank of Brazil Units produced: 50 million Reverse: The Central Bank building, its logo, and the inscription "50 anos". | |
| 1 real | Release date: 28 August 2019 Occasion: The 25th anniversary of the creation of the Plano Real Units produced: 25 million Reverse: A hummingbird feeding its chicks, based on the image of the 1 real banknote. |
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 the 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. On July 29 2020, the Central Bank of Brazil announced the release of the 200 reais banknote. It will be released by the end of August 2020.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 the 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
Historical exchange rate
| Date | Rate |
| 1994-07-01 | 1.00 |
| 1994-10-14 | 0.83 |
| 1995-02-15 | 0.88 |
| 1995-12-29 | 0.97 |
| 1996-06-11 | 1.00 |
| 1996-12-31 | 1.04 |
| 1997-12-31 | 1.12 |
| 1998-12-31 | 1.20 |
| 1999-01-12 | 1.21 |
| 1999-01-13 | 1.31 |
| 1999-01-29 | 1.98 |
| 1999-03-03 | 2.16 |
| 1999-04-30 | 1.66 |
| 1999-12-31 | 1.78 |
| 2000-12-31 | 1.96 |
| 2001-05-02 | 2.23 |
| 2001-10-15 | 2.78 |
| 2002-01-25 | 2.38 |
| 2002-04-12 | 2.27 |
| 2002-06-27 | 2.83 |
| 2002-09-30 | 3.87 |
| 2002-10-12 | 3.93 |
| 2002-10-22 | 3.96 |
| 2002-12-27 | 3.53 |
| 2003-02-18 | 3.61 |
| 2003-06-28 | 2.87 |
| 2003-09-30 | 2.93 |
| 2003-12-28 | 2.93 |
| 2004-03-31 | 2.91 |
| 2004-05-23 | 3.18 |
| 2004-06-28 | 3.10 |
| 2004-09-30 | 2.85 |
| 2004-12-28 | 2.69 |
| 2005-02-19 | 2.56 |
| 2005-03-26 | 2.73 |
| 2005-06-28 | 2.38 |
| 2005-09-25 | 2.26 |
| 2005-11-11 | 2.17 |
| 2005-12-28 | 2.36 |
| 2006-03-27 | 2.15 |
| 2006-05-07 | 2.05 |
| 2006-12-29 | 2.13 |
| 2007-11-07 | 1.73 |
| 2008-08-01 | 1.56 |
| 2009-03-03 | 2.42 |
| 2009-10-14 | 1.71 |
| 2010-12-30 | 1.66 |
| 2011-07-23 | 1.53 |
| 2012-03-18 | 1.79 |
| 2012-08-19 | 2.01 |
| 2013-03-31 | 2.01 |
| 2013-07-13 | 2.26 |
| 2013-11-01 | 2.23 |
| 2014-01-23 | 2.40 |
| 2014-02-06 | 2.40 |
| 2014-10-23 | 2.50 |
| 2014-12-16 | 2.75 |
| 2015-01-22 | 2.56 |
| 2015-02-02 | 2.71 |
| 2015-03-06 | 3.05 |
| 2015-03-19 | 3.29 |
| 2015-04-24 | 2.95 |
| 2015-04-28 | 2.88 |
| 2015-05-08 | 2.97 |
| 2015-05-29 | 3.18 |
| 2015-08-06 | 3.53 |
| 2015-09-01 | 3.69 |
| 2015-09-04 | 3.80 |
| 2015-09-17 | 3.88 |
| 2015-09-22 | 4.05 |
| 2015-09-24 | 4.24 |
| 2015-09-25 | 3.97 |
| 2015-10-02 | 3.94 |
| 2015-10-09 | 3.75 |
| 2015-11-20 | 3.69 |
| 2015-12-03 | 3.74 |
| 2015-12-09 | 3.73 |
| 2016-02-23 | 3.97 |
| 2016-03-13 | 3.58 |
| 2016-06-30 | 3.18 |
| 2016-10-25 | 3.10 |
| 2017-02-14 | 3.09 |