The Brazilian Real is the official currency of Brazil. This currency is issued and distributed by the Central Bank of Brazil. The official symbol for this currency is similar to the dollar. However, the capital letter ‘R’ is added to distinguish it from the dollar currencies. In terms of its global value, the Brazil Real is 9th in the world in terms of the most traded currency.
However, the Brazilians did not use the Real or any other currency prior to the arrival of the Europeans to their land. The European colonists came to Brazil with commercial interest. Therefore, they developed a coin system that can be used for making trades and transactions. This was the earliest form of banking system introduced in Brazil. The first set of coins were from Portugal and they were introduced in 1694. A mint was established in order to produce coins and currency for Brazil.
The banknotes, on the other hand, did not arrive to Brazil until the middle of the 19th century. Even though Brazil has gained independence from its Portuguese colonizers, they decided to retain the name “real” for their currency.
The Central Bank of Brazil is responsible for issuing the currency of the country. Meanwhile, the Casa de Moeda de Brasil is the one that prints all banknotes of Brazil Real. The coins, on the other hand, are minted through Casa da Moeda de Brasil as well. According to the Central Bank of Brazil, the inflation rate for the Real is at 3.29%.
As for the coins, there are currently 6 denominations that are circulated in Brazil: 1 cent, 5 cents, 10 cents, 25 cents, 50 cents, and 1 real. As for the banknotes, there are also 6 denominations available: 2 real, 5 real, 10 real, 20 real, 50 real, and 100 real.
Fun Facts About Brazil Real
On top of the facts listed above, here are some more things you might want to know about Brazil Real:
- Unlike the dollar or some other currencies that use the decimal system, Brazil does not use the decimal point as a separator. Instead, it uses comma. The purpose of the decimal point and comma are reversed in Brazil.
- The term “real” means “royal” in Portuguese (which is the official language of Brazil).
- Before the Brazil Real became the country’s official currency, they underwent 8 different currency changes prior to that.
- Every banknote is distinguishable for its unique color and design.
- The Banco Central do Brasil conducted an experiment in 2000 wherein they released polymer banknotes. This was designed to make the banknotes more durable and difficult to counterfeit. The public also liked the new material used on the banknotes as compared to the typical paper banknotes. But issues arise when tellers complained about the notes sticking together and making it difficult to handle. Thus, the central bank decided against issuing polymer notes in the future. The ones that were released in circulation were still used though and there are about 9 million of them.