Currency changes in Brazil
In the beginning, trade was based on the exchange of goods. Sugar, tobacco and cotton were the products that served as currency. In the reign of Pedro II, real coins appeared. They were made of gold (dobrão), silver (patacas) and bronze (vintém). Until 1942, Brazil used the same monetary system as Portugal – the real. One million réis was called a conto de réis
UNTIL 1942: REAL
It was the coin that stayed in circulation the longest.
1942: CRUISE
On the 5th of October. Getúlio Vargas cut the first zeros and created the Cruzeiro. Each Cruzeiro was equivalent to one thousand réis.
1967: CRUZEIRO NOVO
During the military regime, the cruise lost three zeros and became a new cruise The replacement took place on February 13th.
1970: CRUISE
The currency returns to se chan Cruzeiro on May 15th. There are no zero cuts
1986: CRUZADO
There go another three and the crusader appears in the government of José Sarney. The change took place on February 23.
1989: NEW CRUZADO
Changes become more frequent. The Brazilian currency lost three more zeros and was renamed the new cross on January 16.
1990: Cruzeiro returned to the Collor government
On March 16th. It was the name given to currency to differentiate it from blocked money. There are no zero cuts.
1993: ROYAL CRUISE
To create the Cruzeiro Real, on August 1st, President Itamar Franco cut another three zeros.
1994: REAL
It was the largest money exchange ever performed in the world. On July 10th, 2,750 cruzeiros reais were exchanged for one real. The Central Bank collected and incinerated 3.4 billion Cruzeiro Real banknotes. He ordered 1.5 billion real banknotes, worth US$27 billion (90% manufactured at the Casa da Moeda, in Rio de Janeiro, and 10% printed in four countries). 900 million coins were also distributed, which weighed 2 thousand tons. The move cost the government coffers $10 million.
CURIOSITIES
- The first coins minted in Brazil came into circulation in 1645, 1646 and 1554. The Dutch, who controlled Pernambuco, made the coins to pay their soldiers.
- With the economic development of colonial Brazil, Portugal began to have difficulties in supplying the country with the necessary amount of coins.
- The first Mint in Brazil appeared on March 8, 1694, in the city of Salvador. Our first coins were minted, Initially, in an almost artisanal way, the House managed to produce only a few dozen pieces of gold and silver per day.
- Four years later, the Casa da Moeda moved to temporary installations in Rio de Janeiro and, in 1700, to Recife, where it remained for two years. He returned permanently to Rio de Janeiro, in ample and adequate space. In 1866, the Palácio da Moeda was inaugurated, which would be called Casa da Moeda two years later.
From 1810, the date of its appearance, until 1969, paper money circulating in Brazil was all manufactured abroad, despite unsuccessful attempts to do so here. In 1969, the first banknotes manufactured in the country began to circulate.
In addition to metal coins, Casa da Moeda makes real paper banknotes and medals. It annually produces an average of 2.4 billion banknotes, 1.5 billion coins and medals and 60 tons of gold in 12.5 kg bars. The Mint is located in Santa Cruz, in Rio de Janeiro.
WHY IS THERE NO THREE REAL NOTE?
The Mint manufactures the money, but who defines the value of banknotes and coins is the project consulting department of the Central Bank. This department does research with the public and merchants to see what the demand is. In this case, it was concluded that there is no need to make a 3 reais bill, as the lower denomination bills are released to facilitate change. The existing ones, 1, 2 and 5, are sufficient to fulfill this role.
- would be It takes 37,416,573,000 1 real bills to circle the Earth completely.
- Why are Real banknotes numbered and coins not? Because, as they are made from a single mold, a new mold would be needed for each coin. And the low value of the coins would not compensate for the high cost of the process.
