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- The Brazilian Currency:
Since 1994, the Brazilian currency has been the Real (plural: Reais), symbol is R$. Because of the very high inflation rates which Brazil had in the 1980s
and early 1990s, the country had to change currency several times: Brazilians were used to dealing with Cruzeiros until 1986; that year, an economic plan
cut three zeros from the bills and changed the currency to Cruzado; a few years later, another three zeros were dropped, and Brazilians were introduced to
the Cruzados Novos ("new cruzados"). In 1990, the Cruzados Novos were retired, and the Cruzeiros were back; in 1993, the Cruzeiros lost another three zeros
and were turned into Cruzeiros Reais; in 1994, following a complicated methodology (the conversion rate, which factored in the course of the American dollar,
was 1 Real = 2,750 Cruzeiros Reais), the Real came to life. Read more about the
Real Plan.
Since 1994, inflation has been maintained at civilized levels (2003, consumer prices rose by about 8%), and the Brazilian citizens had the chance to get
accostumed to a stable currency. There are bills of R$1, R$2, R$5, R$10, R$20, R$50 and R$100; click here to look at the bills. Formerly, the bills were
illustrated with images of Historic characters; problem was, however, that the high inflation caused the bills to loose value too fast, and what was supposed
to be a hommage turned into a mockery. Nowadays, the bills are illustrated with images of Brazilian animals (the feminine character on one side of all bills
is a representation of the Republic).
Coins exist in values of 1 cent (R$0.01), 5 cents, 10 cents, 25 cents, 50 cents and 1 Real. Coins vary in size and color. Since the release of the Real, some
coins were discontinued; click here to check out the Brazilian coins in course.
- The Currencies Market
Differently from most countries, Brazilians are not used to seeing foreigner currency bills; even the American dollar and the euro have limited course;
traveller checks are also restricted (usually, foreigners must exchange the currency before paying their bills, in Reais). Brazilians have no authorization
to have bank accounts in dollar; Brazilian firms (including hotels) must provide invoices and receipts in Reais.
Currency exchange businesses exist in all major cities. "Casas de Cambio" are establishments that deal only with currencies; a few branches of a few banks
also trade currencies, but not at an advantageous rate to the customer. Brazilian banks have developed an efficient Information Technology infrastructure;
holders of major credit cards can use Brazilian ATMs to access their accounts and withdraw cash (other transactions are limited).
Click here to check out the exchange rate of dollar against Real for the past years.
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