Currency - Brazilian real

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Brazilian real

R$
The Brazilian real (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.

The dollar-like sign (cifrão) in the currency's symbol (both historic and modern), and in all the other past Brazilian currencies, is officially written with two vertical strokes rather than one. However, Unicode considers the difference to be only a matter of font design, and does not have a separate code for the two-stroked version.

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

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 × 10 18 (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.

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.

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; all other coins remain legal tender.

Country

Brazil

Brazil (Brasil ), officially the Federative Republic of Brazil (República Federativa do Brasil, ), is the largest country in both South America and Latin America. At 8.5 million square kilometers (3.2 million square miles) and with over 208 million people, Brazil is the world's fifth-largest country by area and the fifth most populous. The capital is Brasília, and the most populated city is São Paulo. The federation is composed of the union of the 26 states, the Federal District, and the 5,570 municipalities. It is the largest country to have Portuguese as an official language and the only one in the Americas; it is also one of the most multicultural and ethnically diverse nations, due to over a century of mass immigration from around the world.

Bounded by the Atlantic Ocean on the east, Brazil has a coastline of 7491 km. It borders all other South American countries except Ecuador and Chile and covers 47.3% of the continent's land area. Its Amazon River basin includes a vast tropical forest, home to diverse wildlife, a variety of ecological systems, and extensive natural resources spanning numerous protected habitats. This unique environmental heritage makes Brazil one of 17 megadiverse countries, and is the subject of significant global interest and debate regarding deforestation and environmental protection.

Language

Brazilian real (English)  Real brasiliano (Italiano)  Braziliaanse real (Nederlands)  Réal brésilien (Français)  Brasilianischer Real (Deutsch)  Real (Português)  Бразильский реал (Русский)  Real brasileño (Español)  Real brazylijski (Polski)  巴西雷亚尔 (中文)  Real (Svenska)  Real (Română)  レアル (日本語)  Бразильський реал (Українська)  Бразилски реал (Български)  브라질 헤알 (한국어)  Brasilian real (Suomi)  Real Brasil (Bahasa Indonesia)  Brazilijos realas (Lietuvių)  Brasiliansk real (Dansk)  Brazilský real (Česky)  Brezilya reali (Türkçe)  Бразилски реал (Српски / Srpski)  Brazil real (Magyar)  Brazilski real (Hrvatski)  เรอัลบราซิล (ไทย)  Ρεάλ Βραζιλίας (Ελληνικά)  Real Brasil (Tiếng Việt) 
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