The Brazilian real, the national currency, marked its 30th anniversary this week. Introduced in 1994 as part of the Real Plan to combat hyperinflation, the real has since undergone significant transformations. Initially facing inflation rates in the thousands, the currency stabilized and became a symbol of economic stability in Brazil.
Today, the challenge lies in the exchange rate, as the real hit a 30-month high against the U.S. dollar. President Lula da Silva’s disagreements with the Central Bank head add to the country’s economic uncertainties. Despite this, innovations like the PIX instant payments system are revolutionizing the Brazilian market, accounting for a growing share of electronic transactions.
The real’s journey from its tumultuous beginnings to becoming a pillar of the Brazilian economy is remarkable. As we reflect on its past accomplishments, we also look ahead to the possibilities that lie in the future of currency and payments in Brazil.
Watch the creation of a cartoon on The Brazilian Report’s TikTok account (@brazilianreport).
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