Brazilian real (old)
Encyclopedia
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
of Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
was the real ' onMouseout='HidePop("51659")' href="/topics/Plural">pl.
Plural
In linguistics, plurality or [a] plural is a concept of quantity representing a value of more-than-one. Typically applied to nouns, a plural word or marker is used to distinguish a value other than the default quantity of a noun, which is typically one...
réis). Its sign was Rs$. It was adopted as the official currency of Brazil in 1790, and remained in use until 1942, when it was replaced by the cruzeiro
Brazilian cruzeiro
The cruzeiro was the currency of Brazil from 1942 to 1986 and again between 1990 and 1993. The name refers to the constellation of the Southern Cross, known in Brazil as Cruzeiro do Sul, or simply Cruzeiro ....
.
The name real was resurrected in 1994 for a new currency unit
Brazilian real
The real is the present-day currency of Brazil. Its sign is R$ and its ISO code is BRL. It is subdivided into 100 centavos ....
, which is still in use. One modern real is equivalent to 2.75 × 1018 (2.75 quintillion) of the old réis.
The name comes from the Portuguese
Portuguese language
Portuguese is a Romance language that arose in the medieval Kingdom of Galicia, nowadays Galicia and Northern Portugal. The southern part of the Kingdom of Galicia became independent as the County of Portugal in 1095...
word real (in the sense of "royal") and was borrowed from a Portuguese currency
Portuguese real
The real was the unit of currency of Portugal from around 1430 until 1911. It replaced the dinheiro at the rate of 1 real = 840 dinheiros and was itself replaced by the escudo at a rate of 1 escudo = 1000 réis...
previously used in Brazil.
The dollar-like sign
Dollar sign
The dollar or peso sign is a symbol primarily used to indicate the various peso and dollar units of currency around the world.- Origin :...
in the currency's symbol (and in the symbols of all other Brazilian currencies), called cifrão in Portuguese, was always written with two vertical strokes (
) rather than one.History
The Portuguese realPortuguese real
The real was the unit of currency of Portugal from around 1430 until 1911. It replaced the dinheiro at the rate of 1 real = 840 dinheiros and was itself replaced by the escudo at a rate of 1 escudo = 1000 réis...
was the currency used by the first Portuguese
Portugal
Portugal , officially the Portuguese Republic is a country situated in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of Europe, and is bordered by the Atlantic Ocean to the West and South and by Spain to the North and East. The Atlantic archipelagos of the...
settlers to arrive in the Americas
Americas
The Americas, or America , are lands in the Western hemisphere, also known as the New World. In English, the plural form the Americas is often used to refer to the landmasses of North America and South America with their associated islands and regions, while the singular form America is primarily...
, but the first official money to circulate bearing the name "real" was actually printed in 1654 by the Dutch
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
, during their occupation of part of the Brazilian Northeast
Northeast Region, Brazil
The Northeast Region of Brazil is composed of the following states: Maranhão, Piauí, Ceará, Rio Grande do Norte, Paraíba, Pernambuco, Alagoas, Sergipe and Bahia, and it represents 18.26% of the Brazilian territory....
.
The real became Brazil's official currency in 1790. It was not sub-divided in smaller units. As the real was affected by inflation
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
during its long lifespan, and the practical currency unit shifted from the real to the mil réis ("one thousand réis") and then to the conto de réis (one million réis, literally "one count of réis") in the final years of the República Velha era.
Amounts under 1,000 réis were typically written prefixed by "Rs", as in "Rs 350". In amounts of 1,000 réis and over, the "Rs" remained as the prefix, but the cifrão "
, a doubly stroked dollar sign, was iserted just after the thousands digit — as in "Rs 1$712" for 1,712 réis. For amounts of one million reais and over, a colon ":" was also inserted just after the millions digit, as in "Rs 1:020$800" for 1,020,800 réis.In the 18th century and early 19th centuries, the gold currency was based on the 22 carat
Carat (purity)
The karat or carat is a unit of purity for gold alloys.- Measure :Karat purity is measured as 24 times the purity by mass:where...
gold piece which weighed ½ ounce (14.34 gram
Gram
The gram is a metric system unit of mass....
s). The standard for the silver currency varied during this period, with the 640 real coin fixed at onça (17.92 grams) of .917 silver in 1806. In 1834, the peça was revalued at 10$000 réis and the silver 1$200 real coin was set at 415 grains (26.89 grams) of .917 silver. In 1846, a gold standard
Gold standard
The gold standard is a monetary system in which the standard economic unit of account is a fixed mass of gold. There are distinct kinds of gold standard...
was established with the mil réis set at 822.076 mg gold, a 37.5% debasement from the previous standard.
After the establishment of the Republic in 1889, the value of the currency fell, with a peg of 180 mg of gold for the one thousand réis set in 1926. This was abandoned in 1933 when the mil réis was pegged to the U.S. dollar at a rate of 12$500 réis = 1 dollar. A further devaluation occurred in 1939, when it was pegged to the U.S. dollar at a rate of 22$500 réis = 1 USD. In 1942, the real was replaced by the cruzeiro
Brazilian cruzeiro
The cruzeiro was the currency of Brazil from 1942 to 1986 and again between 1990 and 1993. The name refers to the constellation of the Southern Cross, known in Brazil as Cruzeiro do Sul, or simply Cruzeiro ....
, at a rate of 1$000 réis = 1 cruzeiro.
Coins
In the 1750s, copper coins were in circulation in denominations of 5, 10, 20 and 40 réis, silver coins for 75, 150, 300 and 600 réis, and gold coins for 1000, 2000, 4000 and 6400 réis. The silver coinage was reformed in 1778, with the introduction of 80, 160, 320 and 640 real coins. Between 1780 and 1782, gold 800, 1600 and 3200 réis were added. In 1809, older copper and silver coins were counterstamped with the Portuguese armsCoat of arms of Portugal
The coat of arms of Portugal was officially adopted on 30 June 1911, along with the republican flag of Portugal. It is based on the coat of arms used by the Portuguese Kingdom since the Middle Ages.-History and meaning:...
, doubling the value of 5, 10, 20 and 40 real pieces and increasing the value of 75, 150, 300 and 600 real coins to 80, 160, 320 and 640 réis. From 1810, Spanish 8 real
Spanish real
The real was a unit of currency in Spain for several centuries after the mid-14th century, but changed in value relative to other units introduced...
coins ("Spanish dollar
Spanish dollar
The Spanish dollar is a silver coin, of approximately 38 mm diameter, worth eight reales, that was minted in the Spanish Empire after a Spanish currency reform in 1497. Its purpose was to correspond to the German thaler...
s") were overstruck to produce 960 real coins. Copper 80 réis were introduced in 1811.
Between 1823 and 1833, the copper coinage of Brazil varied across the country, with denominations of 10, 20, 37½, 40, 75 and 80 réis being produced. Silver coins continued in denominations of 80, 160, 320, 640 and 960 réis, along with gold 4000 and 6400 réis.
Between 1833 and 1835, the coinage was reformed. The copper coinage was standardized across the country, with the introduction of countermarked coins for 10, 20 and 40 réis. Silver coins were introduced in denominations of 100, 200, 400, 800 and 1200 réis, along with gold 10,000 réis.
A further reform between 1848 and 1854 reduced the silver and gold content of the coinage, with new silver coins for 200, 500, 1000 and 2000 réis, and gold 5000, 10,000 and 20,000 réis. Bronze 10 and 20 réis were introduced in 1868, followed by cupro-nickel 100 and 200 réis in 1871, bronze 40 réis in 1873 and cupro-nickel 50 réis in 1886. The 10 réis was discontinued in 1870.
In 1901, cupro-nickel 400 réis were introduced, followed by cupro-nickel 20 réis in 1918. Aluminium-bronze 500 and 1000 réis were introduced in 1922, followed by cupro-nickel 200 réis, aluminium-bronze 2000 réis and silver 5000 réis in 1936.
Banknotes
The earliest Brazilian paper money was issued between 1770 and 1793 by the Administração Geral dos Diamantes (General Diamond Administration) to pay diamond prospectors. Various denominations were issued with the value written on at the time of issue. They circulated at face value and were convertible into coins. Notes were issued by various provinces between 1808 and 1857, in denominations of 37½, 75, 150, 300, 450, 500, 600, 10,000, 25,000, 50,000 and 100,000 réis.The first Banco do Brazil was founded in 1808 and began issuing notes in 1810, in denominations of 30, 40, 50, 60, 70, 80, 90, 100, 20, 300 and 400 mil réis, with 4, 6, 8, 10, 12 and 20 mil réis added in 1813 and 1 and 2 mil réis in 1828. This bank closed in 1829.
In 1833, the government issued copper exchange notes in denominations of 1, 2, 5, 10, 20, 50 and 100 mil réis. These were followed, in 1835, by Treasury notes in denominations of 1, 2, 5, 10, 20, 50, 100, 200 and 500 mil réis. 500 mil réis notes were added in 1874, with 1000 mil réis introduced in 1921. Treasury notes continued to be produced throughout the remaining period the real circulated and the final issues were overstamped to produce the first cruzeiro notes.
Between 1850 and 1893, a number of private banks issued paper money in denominations between 10 and 500 mil réis. They included a later Banco do Brazil (1853–1890), the Banco do Maranhão (1857–1885) and the Banco da República dos Estados Unidos do Brasil (1890–1892).
Regional governments issued paper money between 1892 and 1897. Denominations included 100, 200 and 500 réis and 1, 2, 5, 10, 50, 100, 200 and 500 mil réis, with issues from Alagoas
Alagoas
Alagoas is one of the 27 federative units of Brazil and is situated in the eastern part of the Northeast Region. It borders: Pernambuco ; Sergipe ; Bahia ; and the Atlantic Ocean . It occupies an area of 27,767 km², being slightly larger than Haiti...
, Amazonas, Maranhão
Maranhão
Maranhão is a northeastern state of Brazil. To the north lies the Atlantic Ocean. Maranhão is neighbored by the states of Piauí, Tocantins and Pará. The people of Maranhão have a distinctive accent...
, Pernambuco
Pernambuco
Pernambuco is a state of Brazil, located in the Northeast region of the country. To the north are the states of Paraíba and Ceará, to the west is Piauí, to the south are Alagoas and Bahia, and to the east is the Atlantic Ocean. There are about of beaches, some of the most beautiful in the...
, Rio Grande do Norte
Rio Grande do Norte
Rio Grande do Norte is one of the states of Brazil, located in the northeastern region of the country, occupying the northeasternmost tip of the South American continent. Because of its geographic position, Rio Grande do Norte has a strategic importance. The capital and largest city is Natal...
and Sergipe
Sergipe
Sergipe , is the smallest state of the Brazilian Federation, located on the northeastern Atlantic coast of the country. It borders on two other states, Bahia to the south and west and Alagoas to the north, and to the east is the Atlantic Ocean...
.
Between 1906 and 1910, the Caixa de Conversão issued notes in denominations of 10, 20, 50, 100, 200, 500 and 1000 mil réis (1 conto de réis). In 1905, another Banco do Brazil was founded, which issued paper money between 1923 and 1942 in denominations of 1, 2, 5, 10, 20, 50, 100, 200, 500 and 1000 mil réis. From 1923, the name of the bank was altered to Banco do Brasil. In 1926, the Caixa de Estabilização issued gold notes in denominations of 10, 20, 50, 100, 200, 500 and 1000 mil réis.
Regional governments again issued paper money between 1924 and 1942. Denominations included 2, 5, 10, 20, 50, 100, 200 and 500 mil réis, with issues from Minas Gerais
Minas Gerais
Minas Gerais is one of the 26 states of Brazil, of which it is the second most populous, the third richest, and the fourth largest in area. Minas Gerais is the Brazilian state with the largest number of Presidents of Brazil, the current one, Dilma Rousseff, being one of them. The capital is the...
, Rio Grande do Sul
Rio Grande do Sul
Rio Grande do Sul is the southernmost state in Brazil, and the state with the fifth highest Human Development Index in the country. In this state is located the southernmost city in the country, Chuí, on the border with Uruguay. In the region of Bento Gonçalves and Caxias do Sul, the largest wine...
and São Paulo
São Paulo
São Paulo is the largest city in Brazil, the largest city in the southern hemisphere and South America, and the world's seventh largest city by population. The metropolis is anchor to the São Paulo metropolitan area, ranked as the second-most populous metropolitan area in the Americas and among...
. The last "réis" banknotes were replaced by cruzeiro
Brazilian cruzeiro
The cruzeiro was the currency of Brazil from 1942 to 1986 and again between 1990 and 1993. The name refers to the constellation of the Southern Cross, known in Brazil as Cruzeiro do Sul, or simply Cruzeiro ....
banknotes and withdrawn in 1955.