The national currency of Brazil: the history and today’s economy
The known exact date of the discovery of Brazil is April 22, 1500. After 30 years since this date began colonization of the country by Portugal. But by the end of the XVI century, Portugal and Spain were united under the Spanish crown, and during this period, the main currency in circulation were the Spanish Reais. Since 1690 real becomes the official currency of the country. In this case, the plural word “real” is pronounced “reais”, so the first currency that existed from 1690 to 1942, called a reais, although it is one and the same currency.
The History of Brazil – is a series of denominations, the first of which was held in 1942. Then the country introduced a new currency – the Brazilian Cruzeiro, the exchange rate was 1000 to 1. However, the measures were not sufficient to keep inflation and in 1967, denomination was repeated again at the rate of 1000 to 1 – as a result the national currency has become a so-called new Brazilian Cruzeiro.
Third denomination took place in 1986, when the 1000 Cruzeiro exchanged for 1 Cruzado. The fourth denomination occurred in 1989, has become the new currency Cruzeiro – by now traditional exchange rate. But hyperinflation continued and in 1990, the country has returned to the old name of the monetary unit – Cruzeiro (at the rate of 1000 to 1.) In 1993, as a result of the sixth denomination once again there were removed three zeros from the banknotes and new currency was double named as Real-Cruzeiro. It lasted exactly one year, and in 1994 the Central Bank of Brazil published a current banknotes – Brazilian Real, exchange rate of which was finally stabilized.
In the 2000s, the rate was from 2.38 to 3.93 reais per U.S. dollar. During the global financial crisis real got stronger, and in the spring of 2012, it was in the range 1,82-1,83 per dollar, or about 2.43 per euro.
In the Forex market trade in Brazilian reais less developed than the major freely convertible currencies. However, investors may be interested in Brazil, as an issuer of bonds with high profitability and its associated risk. It should be noted that the country’s economy in 2010 showed an increase of 7.5%, and in 2011, the results were evaluated at 2.7%, that is, in general, one can say that Brazil was able to overcome the global financial crisis.
The import of the cash currency into the country is subject to declaration. It is necessary to keep the exchange certificates, in order to be able to take out what is left at the end of the trip. In a number of tourist destinations can pay by small dollar bills.