Brazil was claimed for Portugal by Pedro Alvares Cabral in 1500 when his fleet sighted the eastern tip of Brazil. Organized colonization began in the 1530s. Brazil was a Portuguese Viceroyalty from 1763 until it gained its independence on September 7, 1822. The Dutch occupied part of Brazil from 1624 to 1661. In 1807, King Joao VI moved his court to Brazil to escape Napoleon, and in 1815 Brazil was declared part of the "United Kingdom" of Brazil and Portugal, losing its colonial status. Brazil gained its independence in 1822 and Pedro I, son of Joao VI became the first emperor of Brazil. In 1889 Brazil became a federated Republic.
The Dutch West Indies Corporation (Geoctroyerde Westindishe Compagnie) established a colony in Pernambuco in 1630, but the city of Recife fell to the Portuguese in 1654. The Dutch minted square coins for use in Brazil between 1645 and 1654 with 1 Gulden (Florin) equal to 20 Stuivers.
Portuguese settlers brought Portuguese and Spanish coins into Brazil. Spanish coins were counterstamped with Portuguese denominations in 1643. Gold was discovered in the Minas Gerais region in 1693 and Portugal began minting coins in Brazil in 1695, minting gold Moedas, silver Reals, Patacas and Vintem, all in multiples of Reis (BRD), which became the legal tender.
Brazil issued two series of coins, one for use in Portugal and one for use in Portuguese colonies and other parts of the Americas. The Dobra was equivalent to the Spanish 8 escudos, was worth 12,800 reis and was popularly known as the "Joe" since it had King Joao V (1707-1750) on the front. The colonial coins were minted in multiples of 1, 2, 4, 10 and 20 thousand reis and had the Portuguese arms on the front and the cross of Jerusalem on the back. Brazil also issued two sets of silver coins. One issue was minted for colonial Brazil and was issued in denominations of 20 to 640 reis. The second series was issued for Minas Gerais between 1752 and 1774 and was issued in denominations of 75, 150, 300 and 1600 reis. Minas Gerais also had a separate copper coinage. Extensive counterstamping increased the supply of coins between 1799 and 1835. New denominations were introduced in 1834, and the Milreis (BRM), equal to 1000 Reis, was adopted as the legal monetary unit of Brazil on September 11, 1846.
Brazil suffered from creeping inflation throughout the twentieth century, leading to the introduction of several new currencies. The Cruzeiro (BRZ) replaced the Milreis on November 1, 1942 at the rate of 1 Cruzeiro equal to 1 Mil Reis. Milreis ceased to be legal tender in 1955. After World War II, inflation increased at an accelerating rate. Numerous currency controls, import taxes, currency devaluations, crawling pegs, multiple currency rates and other techniques were unable to prevent Brazil from periodically collapsing into hyperinflation. The government would introduce a new currency, forswear expanding the money supply, then begin the inflationary cycle again.
On February 13, 1967, a new Cruzeiro (BRB) worth 1000 old Cruzeiros was introduced; on February 28, 1986 the Cruzado (BRC) replaced the Cruzeiro at a rate of 1000:1; on January 15, 1989 the New Cruzado (BRN) replaced the old Cruzado at the rate of 1000:1; on March 16, 1990 the Cruzeiro (BRE) replaced the New Cruzado at a rate of 1 Cruzeiro for each Cruzado; on August 1, 1993 the Cruzeiro Real (BRR) replaced the Cruzeiro at the rate of 1000:1; and on July 1, 1994 the real (BRL/986) replaced the Cruzeiro at a rate of 2750:1. Hence, 1 Real is equal to 2,750,000,000,000,000,000 Reis. All currencies have been divisible into 100 Centavos, though because of the inflation, coins were issued immediately after the currency before banknotes became the only medium of exchange.
Banknotes were issued by the National Treasury from 1833 until 1921 and from 1944 until 1965, by the Caixa de Conversao from 1906 until 1920, by the Caixa de Estabilazcao from 1926 until 1930, by the Banco do Brasil from 1923 until 1942, by the Casa de Moeda in 1942, and by the Banco Central do Brasil from 1965 until today. Banknotes were also issued by private banks until 1900, and by some State Treasuries in the 1920s and 1930s.
The Rio Grandese Republic, which existed independently of Brazil from 1835 to 1845 also used the Reis. |
