The Brazilian real (pl. ; sign: R$; code: BRL) is the official currency of Brazil. It is subdivided into 100 centavos. The Central Bank of Brazil is the central bank and the issuing authority. The real replaced the cruzeiro real in 1994.
the real was the twentieth most traded currency.
History Currencies in use before the current real include: The Portuguese real from the 16th to 18th centuries, with 1,000 réis called the milréis. The old Brazilian real from 1747 to 1942, with 1,000 réis also called the milréis. The first cruzeiro from 1942 to 1967, at 1 cruzeiro = 1 milréis or 1,000 réis. The cruzeiro novo from 1967 to 1970, at 1 cruzeiro novo = 1,000 first cruzeiros. From 1970 it was simply called the (second) cruzeiro and was used until 1986. The cruzado from 1986 to 1989, at 1 cruzado = 1,000 second cruzeiros. The cruzado novo from 1989 to 1990, at 1 cruzado novo = 1,000 cruzados. From 1990, because of the Plano Collor it was renamed the (third) cruzeiro and was used until 1993. The cruzeiro real (CR$) from 1993 to 1994, at 1 cruzeiro real = 1,000 third cruzeiros.
The current real was introduced in 1994 at 1 real = 2,750 cruzeiros reais.
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 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 2,750 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 when it was introduced; as of June 2024, that was equivalent to R$8.08 corrected for inflation. Combined with all previous currency changes in the country's history, this reform made the new real equal to (2.75 quintillion) 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 = . Between 1996 and 1998 the exchange rate was tightly controlled by the Central Bank of Brazil, so that the real depreciated slowly and smoothly to the dollar, dropping from near = to about = 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 = .BNDES: Brazil in the 1990: a successful transition? page 10.
In the following years, the currency's value against the dollar followed an erratic but mostly downward 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 = . In May 2007, for the first time since 2001 (six years), the real became worth more than — even though the Central Bank, concerned about its effect on the Brazilian economy, had tried to keep it below that symbolic threshold. Lula started his government on 1 January 2003 with an exchange rate of = and finished it on 31 December 2010 with an exchange rate of = .
The exchange rate as of September 2015 was = . After a period of gradual recovery, it reached = by February 2017.
Jair Bolsonaro's tenure, initially welcomed with enthusiasm by the financial markets, started with = . Fueled by meager results of the economy, quick disenchantment followed, resulting in a lack of foreign investments and a real's strong depreciation. On 13 May 2020, during the COVID-19 pandemic, which deeply affected Brazil, the real reached a historical low against the US dollar, being negotiated at = .
Following Lula's reelection in the 2022 general elections, the market, which was expected to have reacted poorly, turned out favorable in the first week. The US dollar exchange hit its lowest point since 29 August 2022, dropping from roughly = immediately before the second round of the election, to about = a week after Lula's win. However, two years into Lula's government, at 26 December 2024, the US dollar exchange hit its highest point in history of US$1 = R$6.74.
Coins
First series (1994–1997) Along with the first series of currency, coins were introduced in denominations of 1, 5, 10, and 50 centavos and 1 real on June 30, 1994. The 25 centavos piece was soon introduced on September 30, 1994 due to the constant lack of change in intermediate values in the centavos range, which caused the validity of the old cruzeiro and cruzeiro real banknotes to be extended for two months beyond what was initially intended for the exchange of banknotes and coins until then in circulation for the new ones that began to circulate in the second half of 1994. All were struck in stainless steel.
The coins issued in 1994 are identical in size and weight to the older cruzeiro real coins, save for the 1-centavo piece which corresponded to the even older 1000-cruzeiro coin, as no CR$1 coin was made. This influenced the replacement of this family with a newer one in 1998.
The original 1-real coins, produced only in 1994, were demonetized on 23 December 2003, due to frequent counterfeiting. All other coins remain legal tender.
First seriesImage Value Design Emission start date Withdrawn 1 centavo Obverse: Large denomination flanked by linear patterns.Reverse: Head of Republic. 1 July 1994 Current 5 centavos 10 centavos 50 centavos 1 real23 December 2003 25 centavos Obverse: Large denomination intersected by wavy lines.Reverse: Head of Republic. 30 September 1994Current
Commemorative coins
In 1995, to commemorate the 50th anniversary of the Food and Agriculture Organization, the Central Bank of Brazil released two commemorative variants of the 10 and 25 centavos coins.
Circulating commemorative coins of the Brazilian real's first series Image Value Details 10 centavos Release date: 31 May 1995Occasion: The 50th anniversary of the Food and Agriculture Organization (FAO)Units produced: 1 million for each designReverse: 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).Circulating commemorative coin of the FAO 50th anniversary, 10 cents, Central Bank of Brazil.Circulating commemorative coin of the FAO 50th anniversary, 25 cents, Central Bank of Brazil. 25 centavos
Additionally, non-circulating commemorative coins have also been minted, with non-standard face values – namely R$2, R$3, R$4 and R$20 coins. Although worth more than their face value to collectors, they are nevertheless legal tender.
Non-circulating commemorative coins of the Brazilian real's first series Value Details 2 reais Release date: 4 October 1994Occasion: 300th anniversary of the Brazilian mint (1694–1994)Units produced: 7 thousand 4 reais Release date: 23 December 1994Occasion: Commemorating Brazil's 4th FIFA World Cup winUnits produced: 9 thousand 20 reais Release date: 10 February 1995Occasion: Commemorating Brazil's 4th FIFA World Cup winUnits produced: 2 thousand 3 reais Release date: 31 March 1995Occasion: 30th anniversary of the Central Bank of Brazil (1965–1995)Units produced: 5 thousand 2 reais Release date: 4 December 1995Occasion: Tribute to Formula One racing driver Ayrton Senna (1960–1994)Units produced: 10 thousand 20 reais Release date: 4 December 1995Occasion: Tribute to Formula One racing driver Ayrton Senna (1960–1994)Units produced: 5 thousand 3 reais Release date: 24 October 1997Occasion: 100th anniversary of the city of Belo Horizonte, capital of the state of Minas GeraisUnits produced: 20 thousand
Second series (1998–present)
In 1998, a second series of coins was introduced. It featured copper-plated steel coins of 1 and 5 centavos, bronze-plated steel 10 and 25 centavos, cupronickel 50 centavos coin, and a bimetallic nickel-brass and cupronickel coin of 1 real. In 2002 cupronickel was replaced with stainless steel for the 50-centavo coin and the central part of the 1-real coin, and the nickel-brass ring was changed to a bronze-plated steel one.
In November 2005, the Central Bank discontinued the production of the 1 centavo coins, but the existing ones continue to be legal tender.
Second seriesImage 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 colonizer, 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 , symbol of the Republic.
In November 2019, the Central Bank had the Royal Dutch Mint produce 5 centavos and 50 centavos coins, which have a distinctive letter "A" to indicate they weren't minted by Casa da Moeda.
Commemorative coins
On occasion, the Central Bank of Brazil has issued special commemorative versions of some of the standard coins. These commemorative coins are legal tender, and usually differ from the standard design only on their reverse side.
Until 2009, there were three circulating commemorative coin designs, from 1998, 2002 and 2005: