Brazilian Currency-BRL
The Brazilian real is the national brazilian currency. The currency abbreviation is BRL and in the plural, one speaks of reais. 100 centavos equal a real. One hears again and again about the past high inflation rates which then brought about the introduction of the real in 1994. He replaced the then Cruzeiro. The value of the real was initially controlled by the Brazilian Central Bank and has now been freely traded on the capital market since 1999.
The story of the “Plano Real” should be mentioned briefly here. The real was introduced as a new currency in Brazil on January 7, 1994, and was used in circulation. The currency reform of the Plano Real succeeded in ending the inflation that dominated the country and its economy and steadily reducing it in the following years. With the Plano Real, a solid basis for constant economic growth and price stability could be created. Consider that in June 1994 inflation was still 50% per month. However, the currency reform then allowed inflation to fall below 2% on an annual average with significant economic growth at the same time.
As a result, poor Brazilians had also had rising real incomes for many years.
1999 … another currency crisis. Brazil recorded a significant current account deficit which then triggered a flight of capital. The real then has to be devalued again by around 50%. The Brazilian currency was only able to stabilize again in 2003.
Banknotes
The following banknote denominations exist: 1,2,5,10,20,50,100
Coins
There are the following coins: 1,5,10,25,50 centavos. There is also the 1 real coin
