Brazilian Real (R$)

Brazilian Real (R$)

The Brazilian real (Brazilian real) is the name of the Brazilian currency that was in circulation from 1690 to 1942. When the first real came into circulation, its plural form sounded like “vol” (rice). Currently, the plural form of real is reals. The real is indicated by the character R$ and its code according to the international standard ISO 4217 is BRL.

First King, 1690-1942

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The Portuguese real is the first currency used by Portuguese settlers who arrived in America. Throughout its existence, the real was subject to inflation, with the base monetary unit changing from the real to a thousand kings and a million kings in the later years of the Old Republic era. One million flights were denoted by the Rs symbol in front of the number and the dollar sign. That is, Flight 350 was recorded as “Rs 350”, Flight 1,712 as “Rs $1,712”, and Flight 1,020,800 as “Rs 1:020,800”. For example, the colon denotes division by millions and the dollar sign denotes division by thousands.

In the 18th and early 19th centuries, a gold coin was created from a gold coin weighing 22 carats (14.34 grams). The standard for a silver coin was different in this period and for example in 1806 a silver coin of 640 reis was equivalent to 17.92 grams of .917 silver. In 1834 the face value of the amended gold coin was raised to 10,000 rice and 1,200 rice silver coin equal to 26.89 grams of silver from .917. In 1846 the gold standard for the Thousand Kings Coin was set at 822.076 milligrams of gold, or 37.5% less than the previous standard.

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After the founding of the republic in 1889, the value of the coin fell to 180 milligrams of gold for a thousand king coin in 1926. The gold standard was abolished in 1933 when a thousand king with 12,000 kings was pegged to the dollar. per dollar In 1942 the real was replaced by the cruzeiro at the exchange rate of 1,000 reals for 1 cruzeiro.

Coins

1750 copper coins in denominations of 5, 10, 20, and 40 kings, silver coins in denominations of 75, 150, 300, and 600 kings, and gold coins in denominations of 1000, 2000, 4000, and 6400 kings. The silver coinage system was changed in 1778 when coins appeared in 80, 160, 320, and 640 reis. From 1780 to 1782 gold coins of 800, 1,600 and 3,200 reis were added. In 1809 the Portuguese minted the old copper and silver coins again, doubling the value of the 5, 10, 20 and 40 reyes coins and increasing the price of the 75, 150, 300 and 600 reyes coins 80, 160, 320 and 640 king respectively . From 1810, the Spanish 8-rei coins were re-minted to produce the Brazilian 960-rei coins. In 1811 copper coins were issued with a face value of 80 reis.

From 1823 to 1833, Brazilian copper coinage underwent significant changes. Copper coins were issued in denominations of 10, 20, 37.5, 40, 75, and 80 reals, silver coins in denominations of 80, 160, 320, 640, and 960 reals, and gold coins in denominations of 4,000 and 6,400 reais.

During 1833-1835. The monetary system was reformed. Copper coins were standardized across the country, and rice coins of 10, 20, and 40 were also minted. Silver coins were issued in denominations of 100, 200, 400, 800 and 1,200 Re, while gold was issued in 10,000 Re.

New reform 1848-1854. This led to a reduction in the silver and gold content of the coins, as well as the issuance of new 200, 500, 1,000 and 2,000 Reus silver coins and 5,000 Reus gold coins. Bronze numerals 10 and 20 began in 1868, followed by cupro-nickel numerals 100 and 200 in 1871, bronze numeral 40 in 1873, and cupro-nickel numeral 50 in 1886. Coinage of 10 kings ceased in 1870.

400 copper-nickel rice coins appeared in 1901. In 1918 the production of 20 pieces of copper-nickel rice began. The 500 Rice Bronzes and 1,000 Aluminum Rice Bronzes appeared in 1922, followed by the 200 Copper-Nickel Rice, 2,000 Aluminum Bronze, and 5,000 Silver Rice in 1936.

Banknotes

Brazil’s first paper money was issued by the Royal Diamond Office between 1771 and 1792 to pay diamond prospectors. Back then, banknotes were printed in different denominations. They circulated at face value and could be exchanged for coins. 1808-1857. Banknotes were issued by various provinces in denominations of 37, 5, 75, 150, 300, 450, 500, 600, 10,000, 25,000, 50,000 and 100,000 rice.

The first (private) bank in Brazil was founded in 1808 and began issuing banknotes in 1810 in denominations of 30, 40, 50, 60, 70, 80, 90, 100, 200, 300 and 400,000 Reis 4 banknotes, 6, 8, 10, 12 and 20,000 Re were added in 1813 and 1,000 and 2,000 Re in 1828. This bank closed in 1829.

In 1833 the government issued rice notes for 1, 2, 5, 10, 20, 50 and 100,000 in exchange for copper coins. They were followed by 1835 government bonds for 1, 2, 5, 10, 20, 50, 100, 200 and 500,000 trips. 500 King Notes were added in 1874 and 1 million King Notes were issued in 1921. The issuance of Treasury bills continued until the real expired and the last notes were reissued to issue the first Cruzeiro notes.

1850-1893. Various private banks issued paper money in denominations ranging from Rice 10,000 to Rice 500,000, including the following: Bank of Brazil (1853-1890), Bank of Maranhão (1857-1885), and Bank of the Republic of the United States of Brazil (1890-1892).

Regional governments issued paper money between 1892 and 1897. Their denominations were 100, 200 and 500 Re and 1, 2, 5, 10, 50, 100, 200 and 500,000 Re. They were made in the states of Alagoas, Amazonas, Maranhao, Pernambuco, Rio Grande do Norte and Sergipe.

From 1906 to 1910, the conversion office issued banknotes in denominations of 10, 20, 50, 100, 200, 500, and 1,000,000 reis. In 1905, the new Bank of Brazil was formed, which issued paper banknotes in denominations of 1, 2, 5, 10, 20, 50, 100, 200, 500, and 1,000,000 rice from 1923 to 1942. In 1926, the Stabilization Cashier issued gold banknotes in denominations of 10, 20, 50, 100, 200, 500, and 1,000,000 rice.

The governments of the states of Minas Gerais, Rio Grande do Sul, and São Paulo reissued paper money in denominations of 2, 5, 10, 20, 50, 100, 200, and 500,000 rice between 1924 and 1942.

Second King, 1994-

The modern real (plural reais) was introduced on July 1, 1994 under the presidency of Itamar Franco and Finance Minister Fernando Henrique Cardoso as part of a plan to stabilize the Brazilian economy (also known as the Plan Real). Real Madrid replaced the short-lived Cruzeiro.

The Real was issued as non-circulating currency at the rate of R$1.00 = 1 Real Value (URV). At the time of issue, the exchange rate of CR$ (Cruzeiro) to URV was 1 URV = 2,500~3,000 CR$ (US Dollar to Cruzeiro exchange rate on that day). Since the abolition of the cruzeiros, much work has been done to exchange notes. Due to many currency reforms, one real is now equal to 2.75 x 1018 vol. 1942.

Due to large capital inflows in late 1994 and 1995, the real was initially significantly higher against the US dollar. Very. After a period of fluctuating exchange rates in 1994-1999. The new central bank governor, Arminio Fraga, developed a new approach to fighting inflation that marked the end of the fixed rate period. However, the currency was never truly “free” but in a controlled (dirty) float with frequent central bank interventions aimed at adjusting its price against the dollar.

The process of gradual devaluation continued until the end of 2002. Then the prospect of an election victory for the Labor candidate Luiz Inacio Lula da Silva, who is considered to be a radical populist, led to a new currency crisis and a surge in inflation. , like many Brazilians, fearing a new default or a resumption of orthodox economic policies, bought physical securities to avoid inflation, or simply transferred money abroad. In October 2002, the real hit its all-time low of BRL 4 to US$1. However, following promises by then-Central Bank Governor Arminio Fraga and constant reiterations by Lula and his Treasury Secretary that macroeconomic policies (including an emphasis on fighting inflation) would allow the major currency to appreciate against the euro, the dollar has continued to do so. since the beginning of 2005 against other world currencies.

Coins

In 1994 coins of 1, 5, 10, 25 and 50 cents and 1 real were introduced. All were stamped in stainless steel. In 1998, a second series of coins was introduced: copper-plated steel 1 and 5 centavos, brass-plated steel 10 and 25 centavos, copper-nickel alloy 50 centavos, and a two-tone copper-nickel 1 real. Alloys and Brass (since 2002). – 50 cents in steel and 1 two-tone real in brass and steel). Both series of coins are in circulation, but the government will phase out the first series. On December 23, 2003, the first genuine Series 1 coin was withdrawn from circulation. In November 2005, the Central Bank of Brazil decided to stop minting 1 cent coins due to their low value. However, coins in circulation are still valid.