Currency changes in Brazil
In the beginning, trade was based on bartering goods. Sugar, tobacco and cotton were the products that served as currency. During 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 one conto de réis.
UNTIL 1942: REAL
It was the currency that remained in circulation the longest.
1942: CRUISE
On October 5th, Getúlio Vargas made the first cut of zeros and created the cruzeiro. Each cruzeiro was equivalent to one thousand réis.
1967: NEW CRUISE
During the military regime, the cruzeiro lost three zeros and became a new cruzeiro. The replacement took place on February 13th.
1970: CRUISE
The currency will be re-evaluated as cruzeiro on May 15. There will be no zero cuts.
1986: CRUSADER
Three more go by and the crusader appears in the government of José Sarney. The change took place on February 23.
1989: NEW CRUSADE
Changes are becoming more frequent. The Brazilian currency lost three more zeros and became known as the Cruzado Novo on January 16.
1990: Cruzeiro returned to the Collor government
On March 16. This was the name given to the currency to differentiate it from the blocked money. There are no zeros cut.
1993: ROYAL CRUISE
To create the cruzeiro real, on August 1, President Itamar Franco cut another three zeros.
1994: REAL
It was the largest currency exchange ever carried out in the world. On July 10, 2,750 cruzeiros were exchanged for one real. The Central Bank collected and incinerated 3.4 billion cruzeiros. It ordered 1.5 billion real notes, worth 27 billion dollars (90% manufactured at the Casa da Moeda in Rio de Janeiro and 10% printed in four countries). 900 million coins, weighing 2,000 tons, were also distributed. The change cost the government 10 million dollars.
CURIOSITIES
- The first coins minted in Brazil entered circulation in the years 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 Brazilian Mint was founded on March 8, 1694, in the city of Salvador. Our first coins were minted. Initially, the Mint was almost artisanal, and could only produce a few dozen gold and silver coins per day.
- Four years later, the Mint moved to temporary facilities in Rio de Janeiro and, in 1700, to Recife, where it remained for two years. It returned permanently to Rio de Janeiro, in a large and suitable space. In 1866, the Palácio da Moeda was inaugurated, which would be renamed Casa da Moeda two years later.
From 1810, when it first appeared, until 1969, all paper money in circulation in Brazil was manufactured abroad, despite failed attempts to do so here. In 1969, the first banknotes manufactured in the country began to circulate. The Mint, which had its facilities modernized, issued five different denominations of banknotes on the same day, within the limits established by the Reform of the Brazilian Monetary Standard of 1967.
In addition to metal coins, the Mint produces paper real banknotes and medals. It produces an average of 2.4 billion banknotes, 1.5 billion coins and medals, and 60 tons of gold bars weighing 12.5 kilos per year. The Mint is located in Santa Cruz, Rio de Janeiro.
WHY IS THERE NO THREE REAIS NOTE?
The Mint manufactures the money, but the Central Bank's project consulting department determines the value of the bills and coins. This department conducts a survey of the public and merchants to determine the demand. In this case, it was concluded that there is no need to issue a 3 reais bill, since lower-value bills are issued to make change easier. The existing 1, 2 and 5 reais notes are sufficient to fulfill this role.
- Would be 37,416,573,000 1 real notes are needed to go around the Earth once.
- Why are Real notes numbered and coins are not? Because, since 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.