Brazilian real

Brazilian real
real brasileiro (Portuguese)
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
Coins
Freq. used	5, 10, 25, 50 centavos, and R$1
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	3.75% (2018 est.)[1]
Source	Central Bank of Brazil, 2018
Method	CPI

The Brazilian real (Portuguese: real, 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.

As of April 2016, the real is the nineteenth most traded currency in the world by value.^[2]

History[edit]

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 '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 (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.^[3]

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 (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.

The exchange rate as of September 2015 was BRL 4.05 to US$1.00, however it has since been in a gradual recovery period, reaching 3.0 BRL per US dollar by February 2017.

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; the 25 centavos piece soon followed. All were struck in stainless steel; the original 1-real coins, produced only in 1994, were demonetized on 23 December 2003;^[4] 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 (withdrawn from circulation)	Obverse: Head of Republic. Reverse: Large denomination flanked by linear patterns.

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, 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 (no longer produced)	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[edit]

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 some coins on special occasions; these coins are legal tender and differ from the standard ones only on the reverse side.

Image	Value	Details
	10 and 25 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).[5][6]
	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" (Universal Declaration of Human Rights) and "Cinqüentenário" (50th anniversary).[7]
	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" (Juscelino Kubitschek's centenary). 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.[8]
	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" (Central Bank of Brazil) and "1965 40 anos 2005" (1965 40 years 2005).[9]
	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)[10]
	1 real	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.[10]
	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" (50 years).[10]

Banknotes[edit]

First series (1994–2010)[edit]

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.

Real series[11]
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)

Second series (2010–present)[edit]

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.^[12][13]

2010, 2011, and 2012 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	Plants; head of Republic	Green-winged macaw (Ara chlorepterus)	23 July 2012	Green-winged macaw and electrotype 10
		20 reais	142 mm × 65 mm	Yellow	Plants; head of Republic	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

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 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[edit]

Most traded currencies by value
Currency distribution of global foreign exchange market turnover^[14]

Rank	Currency	ISO 4217 code (symbol)	% of daily trades (bought or sold) (April 2016)
1	United States dollar	USD (US$)	87.6%
2	Euro	EUR (€)	31.4%
3	Japanese yen	JPY (¥)	21.6%
4	Pound sterling	GBP (£)	12.8%
5	Australian dollar	AUD (A$)	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[15]			200.0%

Historical exchange rate[edit]

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

Historical US$/BRL exchange rate

The cost of one Euro in Brazilian real.

Current exchange rates[edit]

See also[edit]

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

References[edit]

External links[edit]

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