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Coin History of Brazil
From the Colonial period to 1942
The Portuguese real (plural
réis) was the currency used by the first
Portuguese settlers to arrive in the then New
World, but the first official money to circulate
bearing the name "real" was actually printed in
1654 by the Dutch, during their occupation of
part of the Brazilian Northeast. The colonial
real was not sub-divided in smaller units.
The real became Brazil's
official currency in 1690, and it would remain
as such until 1942, when it was replaced by the
cruzeiro at a rate of 1000 réis = 1 cruzeiro.
The real was affected by
inflation during its long lifespan and the base
currency unit shifted from one real to
mil réis (one thousand réis) and to one
conto de réis (one million réis) in the
final years of the República Velha era. One
conto de réis was represented by the symbol Rs
written before the value and by a dollar sign.
Thus, 350 réis was written as "Rs 350"; 1,712
réis as "Rs 1$712"; and 1,020,800 réis was
written as "Rs 1:020$800". This means that the
colon functioned as the millions comma and the $
sign as the thousands comma.
1994 to the Present
The modern real (plural
reais) was implemented on 1 July 1994,
during the presidency of Itamar Franco, when
Fernando Henrique Cardoso was the Minister of
Finance, as part of a broader plan to stabilize
the Brazilian economy, known as Plano Real,
replacing the short-lived cruzeiro real.
On 1 July 1994, the real
became legal tender, with R$ 1.00 = 1 URV (Unidade
Real de Valor = Real Value Unit) a non-monetary
currency. At that day, the CR$ to URV average
exchange rate was set at CR$ 2,750.00/URV (the
exchange rate of the US dollar to the cruzeiro
real at that day), and a massive banknote
changeover process was undertaken, due to the
demonetization of the cruzeiro real.
As a result of multiple
currency reforms, the present real is equivalent
to 2.75 x 1018 pre-1942 réis.
The real initially
appreciated (gained value) against the U.S.
dollar as a result of the large amount of
capital inflows in late 1994 and 1995. It then
began a gradual depreciation process,
culminating in the 1999 January Brazilian
currency crisis, when the Real suffered a
maxi-devaluation, and fluctuated wildly.
Following this period (1994-1999) of a
quasi-fixed exchange rate, an
inflation-targeting policy was instituted by new
central bank president Arminio Fraga, which
effectively meant that the fixed-exchange period
was over. However, the currency was never truly
"free," being more accurately described as a
managed or "dirty" float, with frequent central
bank interventions to manipulate its dollar
price.
The currency suffered a
gradual depreciation until late 2002, when the
prospect of the election of PT's (Labour Party)
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, as many Brazilians fearing
another default or a resumption of heterodox
economic policies purchased tangible assets as
an inflation hedge or just simply took their
money out of the country. At its worst point in
October of 2002, the Real actually reached its
historic low of almost R$4 per US$1. However,
following assurances by then central bank
president Arminio Fraga and repeated assertions
by Lula and his finance minister that orthodox
macroeconomic policies would be continued
(including inflation-targeting, primary fiscal
surplus and floating exchange rate, as well as
continued payments of the public debt) the real
has been getting stronger and stronger against
the dollar and, since the beginning of 2005,
most other world currencies as well.
In the year of 2007, in
spite of the various attempts of the Brazilian "Banco
Central" (Central Bank) to keep real low, it has
grown stronger against the dollar.
In Brazil, the symbol R$ is
used before the number and the decimal separator
is a comma (,): R$ 123,45.
Coins
There are two types of coins for each
denomination. The first type, released in
1994, was made of
stainless steel. Those coins are
called First Family. Later, the
government decided to release a second set of
coins, with different colors and sizes, to
facilitate the use by the general public and
hinder counterfeiting. Those are the
Second Family, released in 1998<.
Both families are equally valid, but the government
has plans to eventually remove the First Family
from circulation and keep only the second set of
coins. On December 23,2003, the First Family's one real
coin started to be
withdrawn from circulation, being
replaced by the Second Family's one as they
arrive at a bank. In November of 2005, the
Brazilian Central Bank decided to discontinue
the manufacturing of new units of the one cent
coin, from both families. The existing
units, from both the First and the Second
Families, continue to be fully valid, but
without renewal, this denomination is expected
to disappear from circulation gradually. The
explanation given was that the Brazilian people
are prone to overlook a denomination as low as
one cent, causing the coins to be underused and
thus making them expendable.
First Family
|
Value |
Front |
Reverse |
| 0,01 |
 |
 |
| 0,05 |
 |
 |
| 0,10 |
 |
 |
| 0,25 |
 |
 |
| 0,50 |
 |
 |
|
1 |
 |
 |
Second Family
|
Value |
Front |
Reverse |
Engravings |
| 0,01 |
 |
 |
Front: The Southern Cross in
right upper side.
Back: Depicts Pedro Álvares
Cabral, Portuguese sea captain. 1500s
Portuguese ship in the background. |
| 0,05 |
 |
 |
Front: The Southern Cross in
right upper side.
Back: Depicts Joaquim José da
Silva Xavier (also known as Tiradentes),
martyr of early independence movement.
In the background, a triangle, symbol of
the movement, and a dove, symbol of
peace and freedom. |
| 0,10 |
 |
 |
Front
Back
|
| 0,25 |
 |
 |
Front
Back
|
| 0,50 |
 |
 |
Front
Back
|
| 1 |
 |
 |
Front
Back
|
Commemorative versions of the
one real coin
On occasions deemed special,
the Brazilian Central Bank has
released special versions of the
one real coin. So far, three
different versions have been
released, in commemoration of
three occasions. The difference
between those coins and the
"main" one real coins is only
the reverse, which depicts
something allusive to the
occasion at hand. All the
versions are
legal tender, being equally
valid with the main issue.
|
Value |
Image |
Details |
| 1 |
 |
Release date:
December 10,
1998
Occasion: The
50th anniversary of the
Universal Declaration of
Human Rights
Units produced:
600 thousand
Reverse: The
official
logo of the
commemorations; in
bas-relief, a
human figure. In the
outer ring, the
inscriptions "Universal
Declaration of Human
Rights" and "50th
anniversary" |
| 1 |
 |
Release date:
September 12,
2002
Occasion: The
100th birth anniversary
of Brazilian
ex-president
Juscelino Kubitschek
Units produced:
50 million
Reverse: A
profile of Kubitschek's
face. Vertically, the
inscription "Juscelino
Kubitschek's Centenary".
In the outer ring,
images allusive to the
columns of the Alvorada
Palace, the Presidential
residence in
Brasília, the city
that he built. |
| 1 |
 |
Release date:
September 23,
2005
Occasion: The
40th anniversary of the
foundation of the
Brazilian Central Bank
Units produced:
40 million
Reverse: Image of
the
trademark Central
Bank building, inspired
in the official logo
developed for the
commemorations. In the
outer ring, the
inscriptions "Brazilian
Central Bank" and "1965
40 YEARS 2005" |
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