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Brazilian real
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| Real brasileiro (Portuguese) | |||||
|---|---|---|---|---|---|
| |||||
| ISO 4217 | |||||
| Code | BRL (numeric: 986) | ||||
| Subunit | 0.01 | ||||
| Unit | |||||
| Unit | real | ||||
| Plural | reais | ||||
| Symbol | R$ | ||||
| Nickname | pila, prata, mango, pau, conto, réis (plural) | ||||
| Denominations | |||||
| Subunit | |||||
| 1⁄100 | centavo | ||||
| Banknotes | R$ 2, R$ 5, R$ 10, R$ 20, R$ 50, R$ 100, R$ 200 | ||||
| Coins | |||||
| Freq. used | 5, 10, 25, 50 centavos and 1 Real | ||||
| Demographics | |||||
| Date of introduction | 1 July 1994 | ||||
| Replaced | Cruzeiro Real | ||||
| User(s) | Brazil | ||||
| Issuance | |||||
| Central bank | Central Bank of Brazil | ||||
| Website | www | ||||
| Printer | Casa da Moeda do Brasil | ||||
| Website | www | ||||
| Mint | Casa da Moeda do Brasil | ||||
| Website | www | ||||
| Valuation | |||||
| Inflation | 4.71% (December 27th 2024) | ||||
| Source | IBGE | ||||
| Method | CPI | ||||
The Brazilian real[a] (pl. reais; sign: R$; code: BRL) is the official currency of Brazil. It is subdivided into 100 centavos. The Central Bank of Brazil is the central bank and the issuing authority. The real replaced the cruzeiro real in 1994.
As of April 2019,[update] the real was the twentieth most traded currency.[1]
History
[edit]Currencies in use before the current real include:
- The Portuguese real from the 16th to 18th centuries, with 1,000 réis called the milréis.
- The old Brazilian real from 1747 to 1942, with 1,000 réis also called the milréis.
- The first cruzeiro from 1942 to 1967, at 1 cruzeiro = 1 milréis or 1,000 réis.
- The cruzeiro novo from 1967 to 1970, at 1 cruzeiro novo = 1,000 first cruzeiros. From 1970 it was simply called the (second) cruzeiro and was used until 1986.
- The cruzado from 1986 to 1989, at 1 cruzado = 1,000 second cruzeiros.
- The cruzado novo from 1989 to 1990, at 1 cruzado novo = 1,000 cruzados. From 1990, because of the Plano Collor it was renamed the (third) cruzeiro and was used until 1993.
- The cruzeiro real (CR$) from 1993 to 1994, at 1 cruzeiro real = 1,000 third cruzeiros.
The current real was introduced in 1994 at 1 real = 2,750 cruzeiros reais.
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 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 when it was introduced; as of June 2024, that was equivalent to R$8,08 corrected for inflation.[2] Combined with all previous currency changes in the country's history, this reform made the new real equal to 2.75 × 1018 (2.75 quintillion) 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=R$1. Between 1996 and 1998 the exchange rate was tightly controlled by the Central Bank of Brazil, so that the real depreciated slowly and smoothly to the dollar, dropping from near US$1=R$1 to about US$1=R$1.2 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 US$1=R$2.[3]
In the following years, the currency's value against the dollar followed an erratic but mostly downward 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 (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 US$1=R$2. In May 2007, for the first time since 2001 (six years), 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 US$1=R$3.52 and finished it in 12/31/2010 with an exchange rate of US$1=R$1.66.[4]
The exchange rate as of September 2015 was US$1=R$4.05. After a period of gradual recovery, it reached US$1=R$3 by February 2017.
Jair Bolsonaro's tenure, initially welcomed with enthusiasm by the financial markets, started with US$1=R$3.86. Fueled by meager results of the economy, quick disenchantment followed, resulting in a lack of foreign investments and a real's strong depreciation.[5] On 13 May 2020, during the COVID-19 pandemic, which deeply affected Brazil,[6] the real reached a historical low against the US dollar, being negotiated at US$1=R$5.90.[7]
Following Lula's reelection in the 2022 general elections, the market, which was expected to have reacted poorly, turned out favorable in the first week.[8][9] The US dollar exchange hit its lowest point since 29 August 2022, dropping from roughly US$1=R$5.30 immediately before the second round of the election, to about US$1=R$5.05 a week after Lula's win. However, two years into Lula's government, at 26 December 2024, the US dollar exchange hit its highest point in history of US$1=R$6.74.[10][11]
Coins
[edit]First series (1994–1997)
[edit]Along with the first series of currency, coins were introduced in denominations of 1, 5, 10, and 50 centavos and 1 real on June 30, 1994. The 25 centavos piece was soon introduced on September 30, 1994 due to the constant lack of change in intermediate values in the centavos range, which caused the validity of the old Cruzeiro and Cruzeiro Real banknotes to be extended for two months beyond what was initially intended for the exchange of banknotes and coins until then in circulation for the new ones that began to circulate in the second half of 1994.. All were struck in stainless steel.
The coins issued in 1994 are identical in size and weight to the older cruzeiro real coins, save for the 1-centavo piece which corresponded to the even older 1000-cruzeiro coin, as no CR$1 coin was made. This influenced the replacement of this family with a newer one in 1998.
The original 1-real coins, produced only in 1994, were demonetized on 23 December 2003,[12] due to frequent counterfeiting.[13] All other coins remain legal tender.
| First series | ||||
|---|---|---|---|---|
| Image | Value | Design | Emission start date | Withdrawn |
|
1 centavo | Obverse: Large denomination flanked by linear patterns. Reverse: Head of Republic. |
1 July 1994 | Current |
|
5 centavos | |||
 
|
10 centavos | |||
|
50 centavos | |||
|
1 real | 23 December 2003 | ||
|
25 centavos | Obverse: Large denomination intersected by wavy lines. Reverse: Head of Republic. |
30 September 1994 | Current |
Commemorative coins
[edit]In 1995, to commemorate the 50th anniversary of the Food and Agriculture Organization, the Central Bank of Brazil released two commemorative variants of the 10 and 25 centavos coins.
| Circulating commemorative coins of the Brazilian real's first series | ||
|---|---|---|
| Image | Value | Details |
|
10 centavos | Release date: 31 May 1995 Occasion: The 50th anniversary of the Food and Agriculture Organization (FAO) 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" (food for all).[14][15] |
|
25 centavos | |
Additionally, non-circulating commemorative coins have also been minted, with non-standard face values – namely R$2, R$3, R$4 and R$20 coins.[16] Although worth more than their face value to collectors, they are nevertheless legal tender.[17]
| Non-circulating commemorative coins of the Brazilian real's first series | ||
|---|---|---|
| Value | Details | |
| 2 reais | Release date: 4 October 1994 Occasion: 300th anniversary of the Brazilian mint (1694–1994) Units produced: 7 thousand | |
| 4 reais | Release date: 23 December 1994 Occasion: Commemorating Brazil's 4th FIFA World Cup win Units produced: 9 thousand | |
| 20 reais | Release date: 10 February 1995 Occasion: Commemorating Brazil's 4th FIFA World Cup win Units produced: 2 thousand | |
| 3 reais | Release date: 31 March 1995 Occasion: 30th anniversary of the Central Bank of Brazil (1965–1995) Units produced: 5 thousand | |
| 2 reais | Release date: 4 December 1995 Occasion: Tribute to Formula One racing driver Ayrton Senna (1960–1994) Units produced: 10 thousand | |
| 20 reais | Release date: 4 December 1995 Occasion: Tribute to Formula One racing driver Ayrton Senna (1960–1994) Units produced: 5 thousand | |
| 3 reais | Release date: 24 October 1997 Occasion: 100th anniversary of the city of Belo Horizonte, capital of the state of Minas Gerais Units produced: 20 thousand | |
Second series (1998–present)
[edit]
In 1998, a second series of coins was introduced. It featured copper-plated steel coins of 1 and 5 centavos, bronze-plated steel 10 and 25 centavos, cupronickel 50 centavos coin, and a bimetallic nickel-brass and cupronickel coin of 1 real. In 2002 cupronickel was replaced with stainless steel for the 50-centavo coin and the central part of the 1-real coin, and the nickel-brass ring was changed to a bronze-plated steel one.[13][18]
In November 2005, the Central Bank discontinued the production of the 1 centavo coins, but the existing ones continue to be legal tender.
| Second series | ||
|---|---|---|
| Image | Value | Design |
|
1 centavo (no longer produced) |
Obverse: The Southern Cross in right upper side. Reverse: Depicts Pedro Álvares Cabral, Portuguese sea captain and Brazil's colonizer, 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. |
In November 2019, the Central Bank had the Royal Dutch Mint produce 5 centavos and 50 centavos coins, which have a distinctive letter "A" to indicate they weren't minted by Casa da Moeda.[19]
- Coins minted by the Royal Dutch Mint
-
5 centavos coin with mint mark -
50 centavos coin with mint mark
Commemorative coins
[edit]
On occasion, the Central Bank of Brazil has issued special commemorative versions of some of the standard coins. These commemorative coins are legal tender, and usually differ from the standard design only on their reverse side.
Until 2009, there were three circulating commemorative coin designs, from 1998, 2002 and 2005:
| Circulating commemorative coins of the Brazilian real's second series (1998–2009) | ||
|---|---|---|
| Image | Value | Details |
 
|
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. On the outer ring, the inscriptions "Declaração Universal dos Direitos Humanos" (Universal Declaration of Human Rights) and "Cinqüentenário" (50th anniversary).[20] |
|
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" (Juscelino Kubitschek's centenary). On 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.[21] | |
|
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. On the outer ring, the inscriptions "Banco Central do Brasil" (Central Bank of Brazil) and "1965 40 anos 2005" (1965 40 years 2005).[22] | |
Between 2010 and 2019, many circulating commemorative coins were issued, celebrating the Rio 2016 Summer Olympics. The 50th anniversary of the Central Bank and the 25th anniversary of the Real were also commemorated:
| Circulating commemorative coins of the Brazilian real's second series (2010–2019) | ||
|---|---|---|
| Image | Value | Details |
|
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" (Olympic Flag Handover) and "Londres 2012—Rio 2016" (London 2012—Rio 2016)[23] |
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|
Release dates: 28 November 2014, 17 April 2015, 7 August 2015, 19 February 2016 (four sets of four designs) Occasion: 2016 Summer Olympics Units produced: 20 million for each design Reverse: Sixteen coin designs, representing athletics (triple jump), swimming, paralympic triathlon, golf, basketball, sailing, paralympic canoeing, rugby, football, volleyball, paralympic athletics (running), judo, boxing, paralympic swimming, and each mascot of the 2016 Summer Olympics and Paralympics.[23] | |
.png)
|
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" (50 years).[23] | |
|
Release date: 28 August 2019 Occasion: The 25th anniversary of the creation of the Plano Real (1994–2019) Units produced: 25 million Reverse: A hummingbird feeding its chicks, the same illustration previously used on the 1 real banknote. | |
There were no circulating commemorative coins for the 200th anniversary of the Independence of Brazil, in 2022. Instead, the first circulating commemorative coin after the COVID-19 pandemic in Brazil was released in 2024, for the 30th anniversary of the Real:
| Circulating commemorative coins of the Brazilian real's second series (2020–2029) | ||
|---|---|---|
| Image | Value | Details |
|
1 real | Release date: 24 September 2024 Occasion: The 30th anniversary of the creation of the Plano Real (1994–2024) Units produced: 45 million[24] Reverse: On the outer ring, the texts "30 years of the Real" and "1994 · 2024". On the inner disc, the Efígie da República, symbol of the Republic, alongside the symbol "R$". |
|
1 real | Release date: 25 July 2025 Occasion: The 60th anniversary of the foundation of the Central Bank of Brazil Units produced: 23,168,000[25] Reverse: On the outer ring, the texts "Banco Central do Brasil" and "1965-2025". On the inner disc, the logo of the Central Bank, 6 slanted stripes and the text "60 anos" (60 years). |
Similarly to the first series, non-circulating commemorative coins have also been minted, with the following non-standard face values: R$2, R$5, R$10 and R$20 coins.[16] Likewise, even if they are worth more than their face value to collectors, they are nevertheless legal tender.[17]
There were 18 types of non-circulating commemorative coins released from 2000 through 2009:
| Non-circulating commemorative coins of the Brazilian real's second series (2000–2009) | ||
|---|---|---|
| Value | Details | |
| 5 reais | Release date: 27 October 2000 Occasion: 500th anniversary of Brazil's discovery by the Portuguese (1500–2000) Units produced: 15.286 | |
| 20 reais | Release date: 27 October 2000 Occasion: 500th anniversary of Brazil's discovery by the Portuguese (1500–2000) Units produced: 6.558 | |
| 2 reais | Release date: 12 September 2002 Occasion: 100th anniversary of the birth of Juscelino Kubitschek (1902–2002) Units produced: 11.414 | |
| 20 reais | Release date: 12 September 2002 Occasion: 100th anniversary of the birth of Juscelino Kubitschek (1902–2002) Units produced: 2.499 | |
| 2 reais | Release date: 12 December 2002 Occasion: 100th anniversary of the birth of Carlos Drummond de Andrade (1902–2002) Units produced: 6.959 | |
| 20 reais | Release date: 12 December 2002 Occasion: 100th anniversary of the birth of Carlos Drummond de Andrade (1902–2002) Units produced: 2.499 | |
| 5 reais | Release date: 20 December 2002 Occasion: Commemorating Brazil's 5th FIFA World Cup win Units produced: 9.999 | |
| 20 reais | Release date: 20 December 2002 Occasion: Commemorating Brazil's 5th FIFA World Cup win Units produced: 2.499 | |
| 2 reais | Release date: 2 August 2003 Occasion: 100th anniversary of the birth of Ary Barroso (1903–2003) Units produced: 4.958 | |
| 20 reais | Release date: 2 August 2003 Occasion: 100th anniversary of the birth of Ary Barroso (1903–2003) Units produced: 2.481 | |
| 2 reais | Release date: 18 December 2003 Occasion: 100th anniversary of the birth of Candido Portinari (1903–2003) Units produced: 2 thousand | |
| Release date: 30 January 2004 Occasion: 100th anniversary of FIFA (1904–2004) Units produced: 12.166 | ||
| 20 reais | Release date: 30 January 2004 Occasion: 100th anniversary of FIFA (1904–2004) Units produced: 4.060 | |
| 2 reais | Release date: 23 October 2006 Occasion: 100th anniversary of the Santos-Dumont 14-bis' famous flight (1906–2006) Units produced: 4 thousand | |
| Release date: 4 April 2007 Occasion: Commemorating the 2007 Pan American Games, which took place in Rio de Janeiro Units produced: 10 thousand | ||
| 5 reais | Release date: 4 April 2007 Occasion: Commemorating the 2007 Pan American Games, which took place in Rio de Janeiro Units produced: 4 thousand | |
| Release date: 4 April 2007 Occasion: 200th anniversary of the arrival of the Portuguese royal family (1808–2008) Units produced: 2 thousand | ||
| 2 reais | Release date: 18 June 2008 Occasion: 100th anniversary of the first Japanese immigration to Brazil (via the Kasato Maru ship) (1908–2008) Units produced: 10 thousand | |
From 2010 through 2019, 15 types of non-circulating commemorative coins were released:
| Non-circulating commemorative coins of the Brazilian real's second series (2010–2019) | ||
|---|---|---|
| Value | Details | |
| 5 reais | Release date: 21 April 2010 Occasion: 50th anniversary of the foundation of Brasília, capital of Brazil (1960–2010) Units produced: 6 thousand | |
| Release date: 21 May 2010 Occasion: Commemorating the 2010 FIFA World Cup Units produced: 9 thousand | ||
| Release date: 1 July 2011 Occasion: 100th anniversary of Ouro Preto, former capital of Minas Gerais (1711–2011) Units produced: 2 thousand | ||
| Release date: 13 August 2012 Occasion: The Olympic Flag Handover for the Rio 2016 Summer Olympics Units produced: 14.127 | ||
| Release date: 29 October 2012 Occasion: Commemorating the United Nations's International Year of Cooperatives (2012) Units produced: 5 thousand | ||
| Release date: 15 November 2012 Occasion: Commemorating the city of Goiás, former capital of the state of Goiás Units produced: 3 thousand | ||
| Release date: 6 December 2013 Occasion: Commemorating the city of Diamantina, Minas Gerais Units produced: 3 thousand | ||
| 10 reais | Release date: 29 January 2014 Occasion: Commemorating the 2014 FIFA World Cup, which took place in Brazil Units produced: 5 thousand | |
| 5 reais | Release date: 29 January 2014 Occasion: Commemorating the 2014 FIFA World Cup, which took place in Brazil Units produced (2 versions): 17.819 (mascot); 19.038 (globe) | |
| 2 reais | Release date: 29 January 2014 Occasion: Commemorating the 2014 FIFA World Cup, which took place in Brazil Units produced (6 versions): 19.959 (goalkeeper); 19.929 (chest); 19.723 (heading); 19.802 (pass); 19.952 (dribble); 19.993 (goal) | |
| 10 reais | Release date: 28 November 2014 (100 metres); 17 April 2015 (pole vault); 7 August 2015 (freestyle wrestling); 19 February 2016 (Olympic torch) Occasion: Commemorating the 2016 Summer Olympics, which took place in Rio de Janeiro Units produced: 5 thousand (each) | |
| 5 reais | Release date: 28 November 2014; 17 April 2015; 7 August 2015; 19 February 2016 Occasion: Commemorating the 2016 Summer Olympics, which took place in Rio de Janeiro Units produced (4 versions): 18.700 + 17.500 + 18 thousand + 13.850 (rowing); 18.700 + 17.500 + 17 thousand + 13.900 (cycling); 18.700 + 17.500 + 17 thousand + 13.300 (athletics); 18.700 + 17.500 + 17.759 + 13.750 (beach volleyball) | |
| Release date: 5 December 2014 Occasion: Commemorating the city of São Luís, capital of Maranhão Units produced: 3 thousand | ||
| Release date: 3 December 2015 Occasion: Commemorating the city of Salvador, capital of Bahia Units produced: 3 thousand | ||
| Release date: 25 November 2016 Occasion: Commemorating the city of Olinda, a city in Pernambuco Units produced: 3 thousand | ||
Since 2020, 3 types of non-circulating commemorative coins were released:
| Non-circulating commemorative coins of the Brazilian real's second series (2020–2029) | ||
|---|---|---|
| Value | Details | |
| 2 reais | Release date: 26 July 2022 Occasion: 200th anniversary of the Independence of Brazil (1822–2022) Units produced: 40.000 (as of 10 June 2024; 40.000 authorized) | |
| 5 reais | Release date: 26 July 2022 Occasion: 200th anniversary of the Independence of Brazil (1822–2022) Units produced: 15.013 (as of 10 June 2024; 20.000 authorized) | |
| Release date: 11 April 2024 Occasion: 200th anniversary of the first Constitution of Brazil and the creation of the Brazilian legislative body (1824–2024) Units produced: 5.614 (as of 10 June 2024; 10.000 authorized) | ||
Trial strike controversy
[edit].jpg)
In 2011, a collector named Pedro Pinto Balsemão claimed to have found a trial strike of the R$1, with a never before seen design, completely different from circulating 1 real coins.[26] Despite the initial skepticism, it was later supposedly confirmed via FOIA requests and interviews that Casa da Moeda do Brasil had minted trial strikes of the R$1 coin prior to the currency design change in 1998, with custom designs that were purposefully different to the final product as to avoid leaks.[27][28]
In May 2021, however, Bentes Group published an explanation as to why the "Real Bromélia" was not included in their Brazilian coins catalog. They claim to have done extensive research into the piece, and to have concluded that it is not a trial strike or test coin, but instead a sort of vending machine token with no numismatic value.[29]
Banknotes
[edit]First series (1994–2010)
[edit]In 1994, banknotes print "A" were issued by Casa da Moeda do Brasil in the amounts of 1, 5, 10, 50 and 100 reais, in addition to supplementary issues of banknotes ordered abroad in the values of 5, 10 and 50 reais of the print "B" produced abroad by the companies Giesecke+Devrient, Thomas de la Rue and François-Charles Oberthur Fiduciaire respectively. In 1997, modified banknotes of 1 real (print "B"), 5 and 10 reais (print "C") were launched, bearing the national flag as a watermark instead of the effigy of the republic in order to reduce the risk of such banknotes being used for counterfeiting banknotes at higher denominations. In 2000, the 10 reais commemorative banknote (print "D") was launched, and this banknote was the first polymer banknote to be issued in the country. In 2001 and 2002, the 2 and 20 reais banknotes were launched, respectively, using the sea turtle and the golden lion tamarin in the watermark and theme, and the 20 reais banknote was the first to make use of holographic elements on the Brazilian banknotes. In 2003, the print "C" of the 1 real banknote was put into circulation, which would have the name "República Federativa do Brasil" at the top in the place where the name "Banco Central do Brasil" was customarily placed, which was placed on the under the obverse of the bill, next to the word real. Such banknote ceased to be issued in 2005.
| First series[30] | ||||||
|---|---|---|---|---|---|---|
| Image | Value | Dimensions | Description | |||
| Obverse | Reverse | Obverse | Reverse | |||
|
|
1 real | 140 mm × 65 mm | The Republic's Effigy, portrayed as a bust |
Sapphire-spangled emerald hummingbird (Amazilia lactea) | |
|
|
2 reais | Hawksbill turtle (Eretmochelys imbricata) | |||
|
|
5 reais | Great egret (Casmerodius albus) | |||
|
|
10 reais | Green-winged macaw (Ara chlorepterus) | |||
|
|
20 reais | Golden lion tamarin (Leontopithecus rosalia) | |||
|
|
50 reais | Jaguar (Onça pintada, Panthera onca) | |||
|
|
100 reais | Dusky Grouper (Epinephelus marginatus) | |||
Commemorative banknotes
[edit]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 circulated 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, the colonizer of Brazil. Reverse: Stylized version of the map of Brazil, with pictures highlighting the ethnic and cultural plurality of the country. |
Second series (2010–present)
[edit]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.[31][32] On 29 July 2020, the Central Bank of Brazil announced the release of the 200 reais banknote.[33] It was released into circulation on 2 September 2020.[34]
| Second series | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Image | Value | Dimensions | Main color | Description | Date of first issue | Watermark | |||
| Obverse | Reverse | Obverse | Reverse | ||||||
|
|
2 reais | 121 mm × 65 mm | Blue | Wave pattern; head of Republic | Hawksbill turtle (Eretmochelys imbricata) | 29 July 2013 | Hawksbill turtle and electrotype 2 | |
|
|
5 reais | 128 mm x 65 mm | Purple | Plants; head of Republic | Great egret (Casmerodius albus) | 29 July 2013 | Great egret and electrotype 5 | |
|
|
10 reais | 135 mm × 65 mm | Red | Green-winged macaw (Ara chlorepterus) | 23 July 2012 | Green-winged macaw and electrotype 10 | ||
|
|
20 reais | 142 mm × 65 mm | Yellow | Golden lion tamarin (Leontopithecus rosalia) | 23 July 2012 | Golden lion tamarin and electrotype 20 | ||
|
|
50 reais | 149 mm × 70 mm | Brown | Jungle plants; head of Republic | Jaguar (Panthera onca) | 13 December 2010 | Jaguar and electrotype 50 | |
|
|
100 reais | 156 mm × 70 mm | Cyan | Underwater plants and starfish; head of Republic; coral | Dusky Grouper (Epinephelus marginatus); coral | 13 December 2010 | Dusky Grouper and electrotype 100 | |
|
|
200 reais | 142 mm × 65 mm | Grey | Savanna plants; head of Republic | Maned wolf (Chrysocyon brachyurus) | 2 September 2020 | Maned wolf and electrotype 200 | |
Among the security features of the second series is ultraviolet printing in the design, referred to as "fluorescent elements".[35] These appear and glow under ultraviolet light.
Exchange rates
[edit]Current exchange rates
[edit]| Current BRL exchange rates | |
|---|---|
| From Google Finance: | AUD CAD CHF CNY EUR GBP HKD JPY USD ARS |
| From Yahoo! Finance: | AUD CAD CHF CNY EUR GBP HKD JPY USD ARS |
| From XE.com: | AUD CAD CHF CNY EUR GBP HKD JPY USD ARS |
| From OANDA: | AUD CAD CHF CNY EUR GBP HKD JPY USD ARS |
Historical exchange rate
[edit]
| Year | Lowest ↓ | Highest ↑ | Average | |||||
|---|---|---|---|---|---|---|---|---|
| Date | Rate | Date | Rate | Rate | ||||
| 2002 | 11 April | 2.2640 | 10 October | 4.0050 | 2.9221 | |||
| 2003 | 2 July | 2.818 | 14 February | 3.7000 | 3.0780 | |||
| 2004 | 30 December | 2.6540 | 22 May | 3.2420 | 2.9260 | |||
| 2005 | 11 November | 2.1630 | 15 March | 2.7660 | 2.4349 | |||
| 2006 | 5 May | 2.0560 | 24 May | 2.4050 | 2.1782 | |||
| 2007 | 14 November | 1.732 | 5 January | 2.153 | 1.948 | |||
| 2008 | 31 July | 1.5620 | 5 December | 2.6210 | 1.8349 | |||
| 2009 | 15 October | 1.698 | 2 March | 2.4510 | 1.9974 | |||
| 2010 | 13 October | 1.6550 | 5 February | 1.8910 | 1.7603 | |||
| 2011 | 26 July | 1.5284 | 22 September | 1.9520 | 1.6750 | |||
| 2012 | 29 February | 1.6920 | 3 December | 2.1395 | 1.9546 | |||
| 2013 | 11 March | 1.9430 | 21 August | 2.4523 | 2.1576 | |||
| 2014 | 10 April | 2.1825 | 16 December | 2.7614 | 2.3531 | |||
| 2015 | 22 January | 2.5554 | 23 September | 4.2491 | 3.3910 | |||
| 2016 | 25 October | 3.1023 | 22 January | 4.1737 | 3.4300 | |||
| 2017 | 16 February | 3.0390 | 19 May | 3.3703 | 3.1855 | |||
| 2018 | 25 January | 3.1463 | 14 September | 4.2066 | 3.6644 | |||
| 2019 | 1 February | 3.6447 | 28 November | 4.2640 | 3.9437 | |||
| 2020 | 2 January | 4.0195 | 14 May | 5.8887 | 5.2420 | |||
| 2021 | 25 June | 4.9142 | 14 September | 5.8757 | 5.3975 | |||
| 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 |
| 2017-05-30 | 3.26 |
| 2017-07-28 | 3.17 |
| 2017-10-30 | 3.25 |
| 2017-12-29 | 3.30 |
| 2018-04-30 | 3.48 |
| 2018-08-30 | 4.18 |
| 2018-12-28 | 3.87 |
| 2019-04-30 | 3.97 |
| 2019-08-30 | 4.13 |
| 2019-12-30 | 4.03 |
| 2020-02-28 | 4.49 |
| 2020-04-30 | 5.42 |
| 2020-05-13 | 5.90 |
| 2020-08-28 | 5.46 |
| 2020-12-30 | 5.19 |
| 2021-03-30 | 5.76 |
| 2021-08-30 | 5.19 |
| 2021-12-30 | 5.58 |
| 2022-04-29 | 4.91 |
| 2022-08-28 | 5.06 |
| 2022-12-30 | 5.21 |
| 2023-04-28 | 5.00 |
| 2023-08-30 | 4.86 |
| 2023-12-29 | 4.84 |
| 2024-03-28 | 4.99 |
| 2024-05-29 | 5.19 |
| 2024-06-28 | 5.55 |
| 2024-08-30 | 5.65 |
| 2024-10-30 | 5.78 |
| 2024-12-27 | 6.19 |
| Currency | ISO 4217 code |
Proportion of daily volume | Change (2019–2022) | |
|---|---|---|---|---|
| April 2019 | April 2022 | |||
| U.S. dollar | USD | 88.3% | 88.5% |  0.2pp
|
| Euro | EUR | 32.3% | 30.5% |  1.8pp
|
| Japanese yen | JPY | 16.8% | 16.7% | 0.1pp
|
| Pound sterling | GBP | 12.8% | 12.9% | 0.1pp
|
| Renminbi | CNY | 4.3% | 7.0% | 2.7pp
|
| Australian dollar | AUD | 6.8% | 6.4% | 0.4pp
|
| Canadian dollar | CAD | 5.0% | 6.2% | 1.2pp
|
| Swiss franc | CHF | 4.9% | 5.2% | 0.3pp
|
| Hong Kong dollar | HKD | 3.5% | 2.6% | 0.9pp
|
| Singapore dollar | SGD | 1.8% | 2.4% | 0.6pp
|
| Swedish krona | SEK | 2.0% | 2.2% | 0.2pp
|
| South Korean won | KRW | 2.0% | 1.9% | 0.1pp
|
| Norwegian krone | NOK | 1.8% | 1.7% | 0.1pp
|
| New Zealand dollar | NZD | 2.1% | 1.7% | 0.4pp
|
| Indian rupee | INR | 1.7% | 1.6% | 0.1pp
|
| Mexican peso | MXN | 1.7% | 1.5% | 0.2pp
|
| New Taiwan dollar | TWD | 0.9% | 1.1% | 0.2pp
|
| South African rand | ZAR | 1.1% | 1.0% | 0.1pp
|
| Brazilian real | BRL | 1.1% | 0.9% | 0.2pp
|
| Danish krone | DKK | 0.6% | 0.7% | 0.1pp
|
| Polish złoty | PLN | 0.6% | 0.7% | 0.1pp
|
| Thai baht | THB | 0.5% | 0.4% | 0.1pp
|
| Israeli new shekel | ILS | 0.3% | 0.4% | 0.1pp
|
| Indonesian rupiah | IDR | 0.4% | 0.4% | 
|
| Czech koruna | CZK | 0.4% | 0.4% |
|
| UAE dirham | AED | 0.2% | 0.4% | 0.2pp
|
| Turkish lira | TRY | 1.1% | 0.4% | 0.7pp
|
| Hungarian forint | HUF | 0.4% | 0.3% | 0.1pp
|
| Chilean peso | CLP | 0.3% | 0.3% |
|
| Saudi riyal | SAR | 0.2% | 0.2% |
|
| Philippine peso | PHP | 0.3% | 0.2% | 0.1pp
|
| Malaysian ringgit | MYR | 0.2% | 0.2% |
|
| Colombian peso | COP | 0.2% | 0.2% |
|
| Russian ruble | RUB | 1.1% | 0.2% | 0.9pp
|
| Romanian leu | RON | 0.1% | 0.1% |
|
| Peruvian sol | PEN | 0.1% | 0.1% |
|
| Other currencies | 2.0% | 2.4% | 0.4pp
| |
| Total[b] | 200.0% | 200.0% | ||
See also
[edit]Notes
[edit]- ^ Brazilian Portuguese: Real Brasileiro [ʁeˈaw bɾaziˈle(j)ɾu]
- ^ The total sum is 200% because each currency trade is counted twice: once for the currency being bought and once for the currency being sold. The percentages above represent the proportion of all trades involving a given currency, regardless of which side of the transaction it is on.
References
[edit]- ^ "Triennial Central Bank Survey Foreign exchange turnover in April 2019" (PDF). Triennial Central Bank Survey. Basel, Switzerland: Bank for International Settlements. 16 September 2019. p. 10. Retrieved 10 August 2021.
- ^ "Real completa 30 anos com desafio de manter poder de compra". 30 June 2024.
- ^ BNDES: Brazil in the 1990: a successful transition? page 10.
- ^ "Cotações e boletins". www4.bcb.gov.br. Retrieved 30 July 2020.
- ^ "Baixos índices de confiança na economia indicam incertezas para o pós-pandemia". Senado Federal (in Brazilian Portuguese). Retrieved 30 July 2020.
- ^ "In pictures: The coronavirus is surging in Brazil". CNN. 22 May 2020. Retrieved 30 July 2020.
- ^ "Dólar sobe a R$5,90, bate recorde nominal e fica a 1,67% dos R$6". R7.com (in Brazilian Portuguese). 13 May 2020. Retrieved 30 July 2020.
- ^ Martins, Raphael (4 November 2022). "A reação dos mercados na primeira semana após a eleição de Lula: bolsa em alta, dólar em queda" [Market's reaction in the first week after Lula's election: stocks high, dollar dropping]. G1 (in Brazilian Portuguese). Retrieved 5 November 2022.
- ^ Gerbelli, Luiz Guilherme; Silva, Maria Regina; Rocha, Silvana (4 November 2022). "Dólar cai 4,49% e Bolsa sobe 3,16% em semana marcada por vitória de Lula" [Dollar drops 4.49% and stocks grow 3.16% in week highlighted by Lula's victory]. Estadão (in Brazilian Portuguese). Retrieved 5 November 2022.
- ^ InfoMoney, Equipe (29 November 2024). "Dólar fecha a R$ 6 por 1ª vez na história, apesar de Lira e Pacheco acalmarem mercado". InfoMoney (in Brazilian Portuguese). Retrieved 30 November 2024.
- ^ "Dólar bate R$ 6,20: entenda por que moeda disparou e continua subindo". CNN Brasil (in Brazilian Portuguese). 17 December 2024. Retrieved 25 September 2025.
- ^ "1 Real stainless steel coin exchange". Central Bank of Brazil.
- ^ a b Alvarenga, Darlan; Gasparin, Gabriela (1 July 2014). "Única fora de circulação, moeda original de R$ 1 é negociada a R$ 10" [The only one no longer circulating, the original R$ 1 coin is sold for R$ 10]. G1 (in Brazilian Portuguese). Retrieved 17 February 2021.
- ^ Circulating commemorative coin of the FAO 50th anniversary, 10 cents, Central Bank of Brazil.
- ^ Circulating commemorative coin of the FAO 50th anniversary, 25 cents, Central Bank of Brazil.
- ^ a b "Moedas do Real - Comemorativas". Central Bank of Brazil. December 2019. Retrieved 24 November 2020.
- ^ a b "Moedas Comemorativas - Razões para Adquirir" [Commemorative Coins - Reasons to Acquire]. Central Bank of Brazil (in Brazilian Portuguese). Retrieved 27 August 2020.
- ^ "Moedas de R$ 0,50 e R$ 1 foram alteradas". Agência Senado. 5 April 2004. Retrieved 28 April 2021.
- ^ Castro, Fabrício de (4 November 2019). "BC coloca em circulação moedas produzidas por companhia holandesa". UOL. Retrieved 22 December 2020.
- ^ Circulating commemorative coin of the Universal Declaration of Human Rights 50th anniversary, Central Bank of Brazil.
- ^ Circulating commemorative coin of Juscelino Kubitschek de Oliveira 100th anniversary, Central Bank of Brazil.
- ^ Circulating commemorative coin of the 40th anniversary of the Banco Central do Brasil, Central Bank of Brazil.
- ^ a b c Real coins—commemorative, Central Bank of Brazil (in Portuguese).
- ^ "Moeda comemorativa dos 30 anos do Real começa a circular" [Coin commemorating 30 years of the Real starts to circulate]. Central Bank of Brazil (in Brazilian Portuguese). 24 September 2024. Retrieved 24 September 2024.
- ^ "Banco Central coloca em circulação hoje moeda comemorativa em celebração dos seus 60 anos" [Central Bank puts into circulation commemorative coin celebrating its 60 years]. Central Bank of Brazil (in Brazilian Portuguese). 25 July 2025. Retrieved 25 July 2025.
- ^ Balsemão, Pedro Pinto (23 March 2012). "Réplica do Real 1997" (in Brazilian Portuguese). Retrieved 22 December 2020.
- ^ Pippi, Emerson (19 December 2018). "Real Balsemão: os segredos da Bromélia" [Balsemão Real: the secrets of the Bromelia] (in Brazilian Portuguese). Retrieved 22 December 2020.
- ^ Cruz, Felipe Branco (5 December 2017). "Qual é o nome da mulher que aparece nas cédulas de real?". UOL (in Brazilian Portuguese). Retrieved 22 December 2020.
- ^ "O "token" bromélia" (in Brazilian Portuguese). Bentes Group. 18 May 2021. Retrieved 27 May 2021.
- ^ "BC - Cédulas comuns" [Central Bank - Common banknotes]. Central Bank of Brazil (in Brazilian Portuguese). Archived from the original on 31 October 2003. Retrieved 27 August 2020.
- ^ Cucolo, Eduardo (13 December 2010). "Novas cédulas do real devem chegar a todas as capitais em até 48 horas" [New Real banknotes should arrive within 48 hours in all capitals]. Folha de S.Paulo (in Portuguese). Retrieved 14 December 2010.
- ^ Brazil introduces new 10- and 20-real banknotes on 23 July 2012 Archived 16 January 2014 at the Wayback Machine BanknoteNews.com. Retrieved 2012-07-24.
- ^ "Banco Central lançará cédula de 200 reais". Banco Central do Brasil. Retrieved 2020-07-29
- ^ "Cédula de R$ 200 entra em circulação hoje". Agência Brasil. Retrieved 2020-09-02
- ^ "Segunda Família do Real – Cartilha de treinamento" (PDF) (in Brazilian Portuguese). Central Bank of Brazil. 2013. p. 18.
- ^ Triennial Central Bank Survey Foreign exchange turnover in April 2022 (PDF) (Report). Bank for International Settlements. 27 October 2022. p. 12. Archived (PDF) from the original on 27 October 2022.
External links
[edit]
Wikimedia Commons has media related to Brazilian 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
| History | |
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| Energy | |
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.svg){kind=small}
Brazilian real
View on Grokipediafrom Grokipedia
Introduction
Definition and Legal Status
The Brazilian real (Portuguese: real brasileiro; ISO 4217 code: BRL; symbol: R$) is the official fiat currency of Brazil, subdivided into 100 centavos.[8][9] It replaced the cruzeiro real on July 1, 1994, at a 1:1 ratio, as part of stabilization measures under the Plano Real to combat chronic hyperinflation.[8] As the exclusive legal tender in Brazil, the real must be accepted for all public and private debts, per federal law, with no other currencies permitted for domestic transactions.[10][11] The Central Bank of Brazil (Banco Central do Brasil) holds sole authority for its issuance, circulation, and withdrawal, managing monetary policy to maintain stability.[12] Private issuance of currency or cryptocurrencies as legal tender is prohibited, reinforcing the real's monopoly status.[11][13]Symbol, Subdivisions, and Usage
The Brazilian real is denoted by the symbol R$, with the international ISO 4217 code BRL.[8][14] The plural form is reais.[15] It is subdivided into 100 centavos, the smaller unit of account.[16][17] Centavo coins exist in denominations such as 1, 5, 10, 25, and 50 centavos, though the 1-centavo coin ceased production after 2000 due to low usage.[8] The real functions as Brazil's official currency and exclusive legal tender, mandatory for all domestic payments, including goods, services, and government transactions.[10][18] Foreign currencies must be exchanged for reais before use, as per Brazilian law, and it circulates in both coin and banknote forms for everyday commerce.[10][19] In numerical representation, decimals use a comma (e.g., R$ 1,50), aligning with Brazilian conventions.[20]Historical Development
Pre-Real Hyperinflation and Currency Instability
Brazil's economy grappled with accelerating inflation from the 1970s onward, exacerbated by oil shocks, external debt crises, and expansionary fiscal policies that led to persistent budget deficits averaging around 6-8% of GDP in the 1980s.[21] [22] These deficits were financed through seigniorage from money printing, fueling monetary expansion that outpaced economic growth and perpetuated inflationary expectations via widespread wage and price indexation mechanisms.[23] [22] By the late 1980s, annual inflation exceeded 1,000%, with 12-month rates hitting 20,263% in March 1990.[24] Hyperinflation intensified in early 1990, with monthly rates reaching 71.9% in January, 71.7% in February, and a peak of 81.3% in March, corresponding to annual rates of over 6,800% by April.[23] [25] This period saw prices rising by a cumulative 472,894,862% from January 1989 to June 1994, eroding purchasing power and distorting economic planning as businesses adjusted prices daily and contracts incorporated automatic escalators.[24] Fiscal imbalances persisted due to structural rigidities, including subsidized credit, state-owned enterprise losses, and resistance to expenditure cuts, which undermined earlier stabilization attempts like the 1986 Cruzado Plan's price freezes and wage controls.[23] [26] Currency instability manifested through repeated redenominations to combat zero proliferation: the cruzeiro (Cr) in February 1986 at 1 Cz, only for the cruzado to be replaced by the cruzado novo (NCz = 1,000 Cz) in August 1993 at 1 CR$ = 1,000 previous cruzeiros.[27] [16] These shifts, enacted amid failed heterodox shocks like wage-price freezes, provided temporary relief but failed to address root fiscal and monetary causes, as inflation expectations remained entrenched and public debt ballooned relative to GDP.[26] By mid-1993, monthly inflation hovered near 30%, prompting the creation of the Unidade Real de Valor (URV) as a non-monetary unit tied to the U.S. dollar to anchor pricing before the real's launch.[28]Plano Real and Introduction in 1994
The Plano Real, implemented in mid-1994 under President Itamar Franco with Fernando Henrique Cardoso as finance minister, represented a heterodox approach to ending Brazil's chronic hyperinflation through monetary reform rather than immediate fiscal austerity. The plan's core innovation was decoupling price adjustments from past inflation via a new unit of account, avoiding the pitfalls of prior failed stabilization efforts that relied on shocks or confiscatory measures. By anchoring expectations to an external reference—the U.S. dollar—the strategy disrupted inertial indexation in wages, rents, and contracts, which had perpetuated monthly inflation rates exceeding 40 percent.[29][30] On March 1, 1994, the Unidade Real de Valor (URV) was launched as a non-circulating virtual currency, defined daily in cruzeiros reais (the prior unit) to maintain parity with the U.S. dollar at approximately 1 URV equaling 1 USD. Initially valued at 647.50 cruzeiros reais per URV, its domestic expression rose with inflation to 2,750 cruzeiros reais by June 30, 1994, allowing economic agents to quote prices, salaries, and debts in URV terms without triggering immediate monetary expansion. This transitional phase indexed the economy to the exchange rate, fostering credibility by demonstrating the government's commitment to stability before full currency replacement, while complementary measures included privatizations and trade liberalization to enhance fiscal discipline over time.[30][29] The Brazilian real was introduced as legal tender on July 1, 1994, converting the URV at a 1:1 ratio and extinguishing the cruzeiros reais, with all outstanding balances redenominated accordingly—thus 1 real equaled 2,750 cruzeiros reais. Coins in denominations of 1, 5, 10, 50 centavos, and 1 real entered circulation the prior day, June 30, while banknotes followed shortly. Initially pegged via the URV anchor to yield an exchange rate of roughly 1 real per U.S. dollar, the real quickly appreciated amid capital inflows, reflecting restored confidence. Inflation responded dramatically: monthly rates fell from 46.6 percent in June 1994 to single digits by year-end, with annual inflation dropping from over 2,000 percent in 1993 to around 900 percent in 1994, stabilizing below 20 percent annually within months due to the breakage of inflationary psychology rather than deficit elimination alone.[30][31][29] ![Brazilian 1 real coin from 1994]float-rightPost-Stabilization Evolution
Following the successful stabilization under the Plano Real, the Brazilian real initially operated under a crawling peg regime managed by the Central Bank of Brazil, which allowed gradual depreciation to counteract inflation differentials while maintaining competitiveness. This system sustained low inflation but faced mounting pressures from fiscal deficits, external shocks like the 1997 Asian financial crisis, and capital outflows, culminating in a speculative attack in late 1998. On January 13, 1999, the government devalued the real by about 8%, abandoning the band system, and by February, the exchange rate had plunged to 2.15 BRL per USD from 1.20 in December 1998, marking the shift to a floating exchange rate regime with occasional interventions.[32][33] In the early 2000s, the real experienced significant appreciation, strengthening from around 3.5 BRL per USD in 2002—amid uncertainty over the election of Luiz Inácio Lula da Silva—to approximately 1.6 by 2008, driven by surging commodity exports (notably soybeans and iron ore), robust global demand from China, high domestic interest rates attracting foreign capital, and improved fiscal discipline under the primary surplus rule.[34] This overvaluation, however, eroded export competitiveness and fueled domestic consumption, contributing to the current account deficits that averaged 1-2% of GDP. The 2008 global financial crisis prompted a temporary depreciation to near 2.4 BRL per USD, but the real rebounded quickly due to countercyclical policies and renewed commodity strength.[34][35] The 2010s saw a reversal with progressive depreciation, as the real weakened from about 1.7 BRL per USD in 2011 to over 4 by 2015, exacerbated by falling commodity prices, a deep recession (GDP contracting 3.5% in 2015 and 3.3% in 2016), political turmoil including the 2016 impeachment of Dilma Rousseff, and expansionary fiscal policies that ballooned public debt to 75% of GDP.[36][37] Central Bank interventions, including interest rate hikes to 14.25% in 2015, provided some stabilization, but structural issues like low productivity growth and corruption scandals undermined investor confidence. By decade's end, the rate hovered around 4 BRL per USD.[36] Into the 2020s, the real faced heightened volatility: the COVID-19 pandemic drove depreciation to a peak of nearly 5.9 BRL per USD in May 2020 amid global risk aversion and domestic fiscal expansion, before recovering to around 5.2 annually.[35] Subsequent fluctuations reflected commodity price swings, U.S. Federal Reserve tightening, and Brazil's policy shifts, with the rate averaging 5.16 in 2020 and climbing to about 5.4 by October 2025. Under President Jair Bolsonaro (2019-2022), orthodox monetary tightening curbed inflation but highlighted fiscal rigidities; Lula's 2023 return introduced spending pressures, contributing to renewed weakening toward 6 BRL per USD by late 2024 before partial stabilization.[38][39] Central Bank interventions and high Selic rates (peaking at 13.75% in 2022) have mitigated extremes, though the real's real effective exchange rate remains undervalued relative to long-term averages, supporting exports but importing inflation risks.[40]| Year | Average USD/BRL Rate | Key Driver |
|---|---|---|
| 1999 | 1.82 | Devaluation crisis[37] |
| 2002 | 3.53 | Election uncertainty[41] |
| 2008 | 1.83 | Commodity peak[41] |
| 2015 | 3.33 | Recession and politics[37] |
| 2020 | 5.16 | COVID-19 shock[41] |
| 2024 | ~5.2 | Fiscal concerns[39] |
Physical Characteristics
Coins
The coins of the Brazilian real were introduced in 1994 alongside the currency's launch under the Plano Real stabilization plan, with initial denominations of 1, 5, 10, 25, and 50 centavos, as well as 1 real, all minted primarily from stainless steel.[42] These first-series coins featured an obverse with the effigy of the Republic flanked by "BRASIL" and the minting year at the bottom, while reverses displayed the denomination and national symbols such as animals or plants specific to each value.[42] The second series of coins, introduced progressively from the late 1990s, replaced the generic Republic effigy with portraits of Portuguese and Brazilian historical figures on the obverse to enhance cultural representation and security features, while maintaining similar reverse designs focused on fauna, flora, and republican symbols.[43] In June 2002, the 50 centavos and 1 real denominations underwent physical modifications, including reduced size and weight for the 1 real coin, which adopted a bi-metallic composition with a brass-plated steel outer ring and nickel-plated steel center to improve durability and deter counterfeiting.[44] Both first- and second-series coins remain legal tender, though older issues are less common in circulation due to wear and replacement.[45] Current circulating denominations are 5, 10, 25, and 50 centavos, and 1 real, with 1 centavo coins minted but rarely used owing to their negligible value relative to inflation-eroded purchasing power.[46] The following table summarizes technical specifications for the second series:| Denomination (R$) | Diameter (mm) | Weight (g) | Thickness (mm) | Edge | Material |
|---|---|---|---|---|---|
| 0.05 | 21.00 | 3.72 | 1.65 | Liso | Aço inoxidável |
| 0.10 | 17.00 | 2.43 | 1.65 | Liso | Aço revestido de cobre |
| 0.25 | 19.00 | 4.08 | 1.65 | Sulcado | Aço niquelado |
| 0.50 | 24.50 | 7.20 | 1.95 | Sulcado | Bronze alumínio |
| 1.00 | 27.00 | 7.40 | 2.00 | Segmentado | Anel: aço banhado a bronze; centro: aço inoxidável |
Banknotes
Banknotes of the Brazilian real were introduced on July 1, 1994, alongside the currency's launch under the Plano Real stabilization plan. Initial denominations comprised 1, 5, 10, 50, and 100 reais, with the 2 and 20 reais notes added subsequently in the first series. The 1 real banknote was phased out in favor of coins, leaving current circulating denominations as 2, 5, 10, 20, 50, 100, and 200 reais.[8][19] The second family of banknotes, rolled out progressively from December 2010 beginning with the 50 and 100 reais denominations, incorporates enhanced anti-counterfeiting measures compared to the original series. These include larger sizes varying by denomination for easier differentiation, predominant colors aiding visual identification, and tactile elements for accessibility. Obverses uniformly feature an effigy of the Republic, while reverses highlight Brazilian biodiversity through depictions of native animal species, many of which face conservation challenges.[49][50][51] The 200 reais denomination, the highest value note, entered circulation on August 31, 2020, to meet increased demand for higher-denomination transactions amid economic pressures including the COVID-19 pandemic. Its reverse portrays the maned wolf, a species emblematic of the Brazilian Cerrado biome, selected for its cultural and ecological significance. Approximately 450 million units were printed at a cost of 325 reais per thousand notes.[52][53] Security elements common to the second family encompass watermarks visible when held to light—such as the denomination numeral and species motifs on lower values like the 2 reais turtle—along with security threads, iridescent strips, and color-shifting numerals. Under ultraviolet light, fluorescent inks reveal additional patterns, while intaglio printing provides raised textures detectable by touch, supporting verification by the visually impaired. These features aim to reduce forgery rates, which prompted the series redesign.[54][8][52]| Denomination | Introduction (Second Family) | Key Reverse Motif |
|---|---|---|
| 2 reais | 2012 | Hawksbill sea turtle |
| 5 reais | 2013 | Giant armadillo |
| 10 reais | 2012 | Green-winged macaw |
| 20 reais | 2012 | Golden lion tamarin |
| 50 reais | 2010 | Jaguar |
| 100 reais | 2010 | Maned wolf (earlier motif) |
| 200 reais | 2020 | Maned wolf |
Exchange Rates and Valuation
Regimes and Central Bank Interventions
The Brazilian real was introduced on July 1, 1994, under a crawling peg exchange rate regime relative to the U.S. dollar, initially set at parity (1 real = 1 USD), with subsequent managed devaluations to anchor inflation expectations amid the Plano Real's stabilization efforts.[26][55] This regime involved daily adjustments by the Central Bank of Brazil (BCB) to prevent sharp appreciations or depreciations, reflecting a hybrid approach that combined nominal anchor properties with flexibility to accommodate capital inflows, which led to real appreciation in the early years.[55] By 1995, the crawling peg incorporated bands and forward-looking devaluation rates, but mounting external pressures from the Asian financial crisis (1997) and Russian default (1998) eroded reserves and rendered the peg unsustainable.[33] On January 15, 1999, following a speculative attack and depletion of international reserves to approximately $38 billion, Brazil abandoned the crawling peg, allowing the real to float freely against the dollar, resulting in an immediate devaluation of over 30% within days. This marked the transition to a flexible (dirty floating) exchange rate regime, where market forces primarily determine the rate, supplemented by occasional BCB interventions to mitigate disorderly adjustments rather than targeting a specific level.[5] Concurrently, in June 1999, Brazil adopted an inflation-targeting framework, which reinforced the floating regime by prioritizing domestic price stability over exchange rate defense, with the BCB's policy rate (SELIC) as the main tool.[56] Under the floating regime, the BCB has intervened selectively to address excessive volatility arising from external shocks or domestic uncertainties, using tools such as spot market auctions, dollar rollovers, and, predominantly since 2002, foreign exchange (FX) swap operations to provide hedging without depleting reserves.[57] For instance, during the 2002 presidential election uncertainty, the BCB rolled over dollar-denominated public debt and sold swaps equivalent to $30 billion to stabilize markets.[58] In the 2008 global financial crisis, interventions included $30 billion in spot sales and swap lines with the Federal Reserve, preventing a sharper depreciation.[58] Post-2013, outright spot interventions ceased in favor of sterilized swaps, but exceptions occurred, such as during the 2015-2016 commodity price slump and fiscal concerns, where swaps peaked at over 1 trillion reais outstanding.[59] More recently, amid the COVID-19 pandemic in March 2020, the BCB announced $28 billion in spot interventions and expanded swaps to inject liquidity, equivalent to 13% of GDP, while coordinating with international central banks.[60] In December 2024, facing record capital outflows of $26.41 billion, the BCB conducted spot sales totaling $21.57 billion—the largest monthly intervention on record—to curb volatility from global rate differentials and domestic fiscal risks.[61] Conversely, during accelerated real weakening in August 2024 (reaching 5.7 per USD), the BCB refrained from intervention, emphasizing the regime's role in absorbing shocks through market adjustments.[62] These actions underscore the BCB's commitment to a flexible regime, where interventions are reactive and aimed at enhancing market functioning rather than suppressing fundamental depreciations driven by fiscal imbalances or commodity dependence.[5] Empirical assessments indicate that such interventions have moderated short-term volatility without distorting long-term equilibrium, though their efficacy depends on credible monetary policy and fiscal restraint.[59]Historical Trends
The Brazilian real experienced relative stability from its 1994 introduction through 1998 under a managed crawling peg regime, with annual average exchange rates against the U.S. dollar ranging from approximately 0.85 BRL per USD in 1994 to 1.16 in 1998, reflecting central bank interventions to defend the currency amid initial post-hyperinflation confidence and capital inflows.[37] This period's overvaluation stemmed from fiscal tightening under the Plano Real but sowed vulnerabilities as reserves dwindled from defending the peg against imported inflation pressures.[63] In January 1999, amid contagion from the Russian default and Asian financial crises, the Central Bank of Brazil abandoned the peg after exhausting foreign reserves in unsuccessful defenses, leading to a sharp devaluation; the rate jumped from around 1.20 BRL per USD to an annual average of 1.82, with intraday peaks exceeding 2.00.[35] The shift to a floating regime with inflation targeting stabilized volatility over time, though the real depreciated further to an annual average of 2.93 in 2002 amid pre-election uncertainty over Luiz Inácio Lula da Silva's victory, capital flight, and fiscal deficit concerns, peaking at nearly 4.00 BRL per USD in October.[64] These episodes highlighted the real's sensitivity to external shocks and domestic political risks, including political and electoral tensions that heighten instability perceptions, capital outflows, and global dollar strength, though internal issues often dominate even in stable external environments, with devaluations exacerbating pass-through inflation but ultimately aiding export competitiveness via cheaper commodities like soybeans and iron ore.[65][66] A sustained appreciation phase followed from 2003 to 2008, driven by surging global commodity demand—particularly from China—high domestic interest rates attracting carry trade capital, and improved fiscal balances under Lula's early commodity-fueled growth; the rate strengthened to an annual average of 1.83 in 2005 and a low of around 1.55 by mid-2008.[37] The 2008 global financial crisis triggered a temporary depreciation to 2.34 annually, as risk aversion prompted outflows, but aggressive central bank rate hikes and reserve interventions limited the damage compared to 1999.[35] Post-crisis interventions, including currency swaps, supported recovery, though critics argue excessive intervention distorted markets and delayed necessary adjustments.[67] The 2010s marked a reversal with progressive depreciation amid falling commodity prices, expansionary fiscal policies under Dilma Rousseff, and corruption revelations from Operation Car Wash eroding investor confidence; annual averages rose from 2.39 in 2011 to 3.33 in 2015, culminating in a recessionary peak near 4.10 amid impeachment proceedings.[37] Fiscal deterioration—public debt surpassing 70% of GDP by 2016—and misguided interventions like "jawboning" banks fueled volatility, contrasting with earlier discipline.[39] Recovery under Michel Temer's austerity and Jair Bolsonaro's reforms stabilized the rate around 3.90–4.00 annually from 2017 to 2019, bolstered by pension reforms and orthodox monetary policy.[35] The COVID-19 pandemic induced the sharpest short-term depreciation in March 2020, with the rate surging to 5.90 intraday amid global risk-off sentiment, supply chain disruptions, and Brazil's early outbreak severity, though the annual average settled at 5.16 following massive fiscal stimulus and vaccine rollout.[64] Subsequent fluctuations reflected commodity rebounds and U.S. Federal Reserve tightening, with the real weakening to annual averages of 5.39 in 2022 amid Ukraine war energy shocks and domestic election tensions.[37] By 2024–2025, the rate hovered around 5.40–5.50, influenced by persistent fiscal deficits exceeding 8% of GDP, renewed spending under Lula's return, and U.S. dollar strength, underscoring the currency's ongoing vulnerability to commodity cycles and policy credibility.[38] Empirical data indicate that depreciations have historically boosted agricultural exports but amplified imported inflation, with central bank independence since 2021 providing some anchor against populist pressures.[65]| Year | Annual Average BRL per USD | Key Trend Driver |
|---|---|---|
| 1994 | 0.85 | Plano Real launch, peg stability[37] |
| 1999 | 1.82 | Peg abandonment, external crises[35] |
| 2002 | 2.93 | Election uncertainty[64] |
| 2008 | 1.83 | Commodity boom peak, then GFC dip[37] |
| 2015 | 3.33 | Commodity slump, fiscal woes[35] |
| 2020 | 5.16 | COVID-19 shock[38] |
| 2024 | ~5.20 | Fiscal expansion, global rates[37] |
Recent Fluctuations (2010s–2026)
The Brazilian real depreciated markedly during the mid-2010s amid a confluence of falling commodity prices, fiscal expansion under President Dilma Rousseff, and the Petrobras corruption scandal, which eroded investor confidence and triggered a recession.[36][68] The USD/BRL exchange rate, which averaged 2.35 reals per U.S. dollar in 2014, surged to 3.33 on average in 2015—a decline of over 40% in the real's value that year—reaching intraday highs near 4.20 amid capital outflows and credit rating downgrades.[69][41] Rousseff's impeachment in August 2016 prompted a sharp rebound, with the real appreciating 23% against the dollar by year-end as markets priced in prospective austerity measures under interim President Michel Temer, stabilizing the rate at an annual average of 3.48 before improving to 3.19 in 2017.[70][71] The currency's trajectory under President Jair Bolsonaro from 2019 reflected initial gains from pro-market reforms and pension overhaul expectations post-election, with the USD/BRL rate dipping below 3.70 early in his term before volatility resumed.[72] The 2020 COVID-19 pandemic induced the sharpest depreciation since 2015, peaking at 5.88 reals per dollar in March amid global risk aversion, domestic fiscal stimulus exceeding 12% of GDP, and delayed lockdowns that amplified economic disruption.[73] Recovery followed in 2021–2022, buoyed by soaring commodity exports like soybeans and iron ore, with annual averages holding around 5.16 in 2020, 5.40 in 2021, and 5.17 in 2022, though political polarization ahead of elections added swings.[41] Lula da Silva's October 2022 election win triggered immediate weakening, as investors anticipated policy shifts toward higher public spending and skepticism over fiscal discipline, pushing the USD/BRL rate above 5.50 within weeks.[74] Depreciation accelerated in 2023–2024, with the real losing over 20% of its value in 2024 alone—the worst performance among major currencies—stemming from expanding deficits exceeding 8% of GDP, insufficient revenue measures, political and electoral tensions increasing instability perceptions, year-end capital outflows, global dollar strength, and central bank interventions strained by political interference concerns, though internal factors predominated even amid stable external conditions.[75][76][66] A December 2024 fiscal package deemed inadequate by markets drove the rate to record lows near 6.00, prompting Selic rate hikes to over 12% by mid-2025 to defend reserves.[77] As of October 2025, the exchange rate stabilized around 5.39, influenced by moderated inflation but persistent doubts over primary surplus targets amid rising public debt above 80% of GDP; on February 12, 2026, the USD/BRL closed at 5.1832, with fluctuations during the day including a reported low of 5.161.[38][35][78][72]| Year | Average USD/BRL Rate | Key High (Intraday) |
|---|---|---|
| 2010 | 1.76 | ~1.85 |
| 2015 | 3.33 | ~4.20 |
| 2016 | 3.48 | ~4.10 |
| 2020 | 5.16 | 5.88 |
| 2024 | 5.39 | ~6.00 |