The real was the unit of currency of Portugal from around 1430 until 1911. It replaced the dinheiro at the rate of 1 real = 840 dinheiros and was itself replaced by the escudo at a rate of 1 escudo = 1000 réis. The escudo was further replaced by the euro at a rate of 1 euro = 200.482 escudos in 2002.
History
The first real was introduced by King Fernando I around 1380. It was a silver coin and had a value of 120 dinheiros. In the reign of King João I, the real branco of libras and the real preto of 7 soldos were issued. By the beginning of the reign of King Duarte I in 1433, the real branco had become the unit of account in Portugal. From the reign of King Manuel I, the name was simplified to real, coinciding with the switch to minting real coins from copper. In 1837, a decimal system was adopted for the coin denominations, with the first banknotes issued by the Banco de Portugal in 1847. In 1854, Portugal adopted a gold standard of 1,000 réis = 1.62585 grams fine gold. This standard was maintained until 1891. Large sums were usually expressed as mil-réis In 1911, the escudo replaced the real at the rate of 1 escudo = 1,000 réis. One million réis was known as a conto de réis. This term survived the introduction of the escudo to mean 1,000 escudos and is now used to mean five euros, almost exactly the converted value of 1,000 escudos or one million réis. Coins and banknotes were also issued denominated in réis for use in the different parts of the Portuguese Empire. See: Angolan real, Azorean real, Brazilian real, Cape Verde real, Mozambican real, Portuguese Guineareal and São Tomé and Príncipereal. Brazil has revived the real as the denomination of its present currency.
Coins
Before the middle of the 19th century, many different denominations were minted, often with values in terms of the real which increased over time. For example, the cruzado was introduced at a value of 324 real branco in the reign of King João II. It was fixed at a value of 400 réis during King João III's reign and this remained the value of the silver cruzado until the reign of King Pedro II, when it was revalued to 480 réis. Meanwhile, the gold cruzado rose in value to 750 réis in the reign of King João IV, then to 875 réis in the reign of King Afonso VI before its demise. Two denominations which did not change their values were the vintém of 20 réis and the tostão of 100 réis. The last 1 real coins were minted in the 1580s. After this time, the smallest coins were worth réis. These were minted until around 1750, after which the three real coin became the smallest circulating denomination. From the early 18th century, the standard gold coin was the peça, valued at 6,400 réis. In the late 18th century and early 19th century, copper coins were issued in denominations of 3, 5, 10, 20 and 40 réis, with silver 50, 60, 100, 120, 240 and 480 réis and gold 480, 800, 1,200, 1,600, 3,200 and 6,400 réis. Some of these coins showed denominations which were no longer accurate due to earlier revaluations. These included the 240 and 480 réis which were inscribed 200 and 400. In 1837, a decimal system was adopted, with copper coins of 3, 5, 10 and 20 réis, silver coins for 50, 100, 200, 500 and 1,000 réis and gold 1,000, 2,000, 2,500, 5,000 and 10,000 réis. In 1875, the last 3 real coins were issued, with cupronickel 50 and 100 réis issued in 1900.
Banknotes
Portugal's first paper money was introduced in 1797 by the government. Denominations issued until 1807 included 1,200, 2,400, 5,000, 6,400, 10,000, 12,000 and 20,000 réis. Some of these notes were revalidated for continued use during the War of the Two Brothers. From the 1820s, several private banks issued paper money. The most extensive issues were by the Banco de Lisboa, whose notes were denominated in both réis and moedas, worth 4,800 réis. This bank issued notes for 1,200 and 2,400 réis, 1, 4, 10, 20, 50 and 100 moedas. The Banco Commercial de Braga, Banco Commercial do Porto, Banco de Guimaraes and Banco Industrial do Porto also issued notes, with bearer cheques issued by a number of other banks between 1833 and 1887. In 1847, the Banco de Portugal introduced notes for 10,000 and 20,000 réis. 5000 réis notes were issued from 1883, followed by 50,000 réis in 1886. In 1891, the Casa de Moeda introduced notes for 50 and 100 réis, and the Banco de Portugal introduced notes for 200, 500, 1,000 and 2,500 réis, followed by 100,000 real notes in 1894.
