Monday, January 3, 2011

Changing face of Brazilian currency

When sorting coins from Brazil, I became acutely aware that there are several coin designs that span a number of currencies. For example, in the 10 years between 1985 and 1995, the Brazilian currency went from the New Cruzeiro, both Cruzados, a third Cruzeiro, Cruzeiro Real and finally ended up with the present currency of Real. Ironically, the Real was the first currency used in Brazil until 1947, when the first Cruzeiro was introduced.

In an effort to accurately correlate my coins with the appropriate currency, I set out on a quest to obtain this information. What is here is what I have found.

First Currency: Real 1620-1947

As a Portuguese colony from 1620-1822, much of the Brazilian economy revolved around its sugar industry and a brief gold rush. The currency used was the Real (Réis) with no subdivision. Copper coins were produced with denominations of 5, 10, 20 and 40 Réis, silver was used for the 75, 150, 300 and 600 Réis coins and gold for 1000, 2000, 4000 and 6400 Réis. The 1778 silver coinage reformation produced denominations of 80, 160, 320 and 640 Réis, with gold 800, 1600 and 3200 Réis coins produced between 1780 and 1782. In 1809, existing copper and silver coins were over punched with the Portuguese arms, and the denomination doubled for 5, 10, 20 and 40 Réis coins. The values of the 75, 150, 300 and 600 Réis coins were increased in value to 80, 160, 320 and 640 Réis, respectively. To completely resolve the older Spanish coinage in circulation, these were over punched to produce 960 Réis coins in 1810. An 80 Réis coin was introduced in 1811.

Another coinage reformation took place between 1833 and 1835 which resulted in a copper coinage standard for the entire country and an over punch for all existing copper coins produced 10, 20 and 40 Réis coins. Silver 100, 200, 400, 800 and 1200 Réis coins and a 10000 gold Réis coin were introduced in this reformation as well. By the late 1840s and extending into the mid 1850s, the currency was reformed further by reducing the silver and gold content in the coinage. A new series of silver and gold coins were produced in denominations of 200, 500, 1000 and 200 silver Réis, and 5000, 10000, 20000 gold Réis. Between 1868 and 1873, bronze 10, 20 and 40 Réis coins were produced. Copper-nickel 50, 100 and 200 Réis coins were introduced in 1871.

400 and 20 Réis copper-nickel coins were introduced in 1901 and 1918 respectively. 1922 saw aluminum-bronze 500 and 100 Réis coins. In 1936, copper-nickel 200 Réis, aluminum-bronze 2000 Réis and silver 5000 Réis coins were introduced.

Second Currency: Cruzeiro 1947-1967

In 1947, Brazil began using the Cruzeiro (Cr / ₢), named for the Southern Cross constellation, as its currency, which replaced the Réis at a rate of 1000 Réis to 1 Cruzeiro. The new Cruzeiro was divided into 100 centavos.

Coins of the first Cruzeiro 1947-1956
First Cruzeiro- centavo coin common obverse 1947 - 1956
First Cruzeiro- 10 centavos coin 1947 - 1956 First Cruzeiro- 20 centavos coin 1947 - 1956 First Cruzeiro- 50 centavos coin 1947 - 1956



First Cruzeiro- Cruzeiro coin common obverse 1947 - 1956
First Cruzeiro- 1 cruzeiro coin 1947 - 1956 First Cruzeiro- 2 cruzeiros coin 1947 - 1956 First Cruzeiro- 5 cruzeiros coin 1947 - 1956

Initially, the coins were composed of copper-nickel for the sub-division denominations and aluminum-bronze for the currency denominations. Starting in 1956, the design of all coins changed, as did the composition- they were now made of aluminum. The 2 and 5 Cruzeiro were discontinued.

First Cruzeiro- Cruzeiro / centavo coin common obverse 1956 - 1961
First Cruzeiro- 10 centavos coin 1956 - 1961 First Cruzeiro- 20 centavos coin 1956 - 1961 First Cruzeiro- 50 centavos coin 1956 - 1961 First Cruzeiro- 1 Cruzeiro coin 1956 - 1961 First Cruzeiro- 2 Cruzeiros coin 1956 - 1961

By 1961, the currency was devalued to the point where coin production stopped completely. When it resumed in 1965, the only coins produced were Cruzeiros made of aluminum for the 10 and 20 and copper-nickel for the 50. Centavo coins were withdrawn from circulation. By the end of 1968, all coins were withdrawn from circulation.

First Cruzeiro- common obverse design for Cruzeiro coin 1965
First Cruzeiro- 10 Cruzeiros coin 1965 First Cruzeiro- 20 Cruzeiros coin 1965

Third Currency: Cruzeiro Novo 1967-1986

By 1967, the Cruzeiro was beyond salvage from rampant inflation, a state which a multitude of Brazilian currencies would exist for another thirty years. The first solution was to introduce a new currency, called Cruzeiro Novo (also divided into 100 centavos), which was valued at 1000 Cruzeiros.

The first coins produced for the new currency were denominated in 1, 2, 5, 10, 20 and 50 centavos and 1 Cruzeiro.

Second Cruzeiro (Novo)- common obverse design for centavo / Cruzeiro coin 1965 - 1986
Second Cruzeiro (Novo)- 1 centavo coin 1965, 1969, 1974 Second Cruzeiro (Novo)- 2 centavos coin 1965, 1969, 1974 Second Cruzeiro (Novo)- 5 centavos coin 1965, 1969, 1974
Second Cruzeiro (Novo)- 10 centavos coin 1967, 1970, 1974 - 1979 Second Cruzeiro (Novo)- 20 centavos coin 1967, 1970, 1975 - 1979 Second Cruzeiro (Novo)- 50 centavos coin 1967, 1970, 1975 - 1979
Second Cruzeiro (Novo)- 1 Cruzeiro coin 1970, 1974 - 1979

The three lowest denominations were stainless steel, while the others were composed of copper-nickel. The copper-nickel coins were eventually replaced by stainless steel and a modified design.

By 1979, inflation gripped the new Cruzeiro and the centavo coins were removed from circulation since they were worthless. Over the following three years, a new design appeared on a smaller 1 Cruzeiro coin and the 5, 10, 20 and 50 Cruzeiro coins were introduced. In 1985, smaller 100, 200 and 500 Cruzeiro coins were being produced. These were all composed of stainless steel.

Second Cruzeiro (Novo)- 1 Cruzeiro coin 1979 - 1985
Second Cruzeiro (Novo)- 1 Cruzeiro coin 1979 - 1985
Second Cruzeiro (Novo)- 5 Cruzeiros coin 1980 - 1984
Second Cruzeiro (Novo)- 5 Cruzeiros coin 1980 - 1984
Second Cruzeiro (Novo)- 10 Cruzeiros coin 1980 - 1986
Second Cruzeiro (Novo)- 10 Cruzeiros coin 1980 - 1986
Second Cruzeiro (Novo)- 20 Cruzeiros coin 1981 - 1986
Second Cruzeiro (Novo)- 20 Cruzeiros coin 1981 - 1986




Second Cruzeiro (Novo)- 50 Cruzeiros coin 1981 - 1986
Second Cruzeiro (Novo)- 50 Cruzeiros coin 1981 - 1986
Second Cruzeiro (Novo)- 100 Cruzeiros coin 1985, 1986
Second Cruzeiro (Novo)- 100 Cruzeiros coin 1985, 1986
Second Cruzeiro (Novo)- 200 Cruzeiros coin 1985, 1986
Second Cruzeiro (Novo)- 200 Cruzeiros coin 1985, 1986
Second Cruzeiro (Novo)- 500 Cruzeiros coin 1985, 1986
Second Cruzeiro (Novo)- 500 Cruzeiros coin 1985, 1986

Fourth Currency: Cruzado 1986-1989

The Novo Cruzeiro had a long death, but was replaced in the end with the Cruzado (Cz$), divided into 100 centavos, at a rate of 1000 Novo Cruzeiro = 1 Cruzado.

The first Cruzado coins issued were composed of stainless steel in denominations of 5, 10, 20 and 50 centavos and 1, 5 and 10 Cruzado coins. Just two years after these coins were minted, production ceased. Again, the currency fell victim to rampant inflation.

First Cruzado- common obverse design for centavo / Cruzado coin 1986 - 1988
First Cruzado- 1 centavo coin 1986 - 1988 First Cruzado- 5 centavos coin 1986 - 1988 First Cruzado- 10 centavos coin 1986 - 1988 First Cruzado- 20 centavos coin 1986 - 1988
First Cruzado- 50 centavos coin 1986 - 1988 First Cruzado- 1 Cruzado coin 1986 - 1988 First Cruzado- 5 Cruzados coin 1986 - 1988 First Cruzado- 10 Cruzados coin 1987 - 1988

Fifth Currency: Cruzado Novo 1989-1990

In January, 1989, the Cruzado Novo (NCz$) was established at a rate of 1000 Cruzados = 1 Cruzado Novo. The currency was divided into 100 centavos. Coin denominations were issued in denominations of 1, 5, 10 and 50 centavos and 1 Cruzado Novo, composed of stainless steel.

Second Cruzado (Novo)- 1 centavo coin 1989 - 1990
Second Cruzado (Novo)- 1 centavo coin 1989 - 1990
Second Cruzado (Novo)- 5 centavos coin 1989 - 1990
Second Cruzado (Novo)- 5 centavos coin 1989 - 1990
Second Cruzado (Novo)- 10 centavos coin 1989 - 1990
Second Cruzado (Novo)- 10 centavos coin 1989 - 1990
Second Cruzado (Novo)- 50 centavos coin 1989 - 1990
Second Cruzado (Novo)- 50 centavos coin 1989 - 1990
Second Cruzado (Novo)- 1 Cruzado Novo coin 1989 - 1990
Second Cruzado (Novo)- 1 Cruzado Novo coin 1989 - 1990

Sixth Currency: Cruzeiro 1990-1993

Unlike the previous four currencies, whose introduction was the result of rampant inflation, this Cruzeiro, also known as the Third Cruzeiro, was merely the result of renaming the Cruzado Novo. It was introduced less than 14 months after the introduction of the Cruzado Novo, and replaced it at a 1:1 ratio.

Since this Cruzeiro was also divided into 100 centavos and replaced the Cruzado Novo at par, the centavo coins issued for the previous currency were kept in circulation and only the 1 Cruzado Novo coin was withdrawn from circulation. Stainless steel 1, 5, 10 and 50 Cruzeiro coins were issued in 1990.

Third Cruzeiro- 1 Cruzeiro coin 1990
Third Cruzeiro- 1 Cruzeiro coin 1990
Third Cruzeiro- 5 Cruzeiros coin 1990, 1991
Third Cruzeiro- 5 Cruzeiros coin 1990, 1991
Third Cruzeiro- 10 Cruzeiros coin 1990, 1991, 1992
Third Cruzeiro- 10 Cruzeiros coin 1990, 1991, 1992
Third Cruzeiro- 50 Cruzeiros coin 1990, 1991, 1992
Third Cruzeiro- 50 Cruzeiros coin 1990, 1991, 1992

Despite the effort to stem the ebb and flow of rampant inflation followed by the introduction of a new currency, less than two years after renaming the Cruzado Novo to the Cruzeiro, inflation again took hold of the currency and higher denominations of coins were issued. Smaller stainless steel 100, 500, 1000 and 5000 Cruzeiro coins were introduced. The coins issued previously became worthless and were taken out of circulation.

Third Cruzeiro- 100 Cruzeiros coin 1992, 1993
Third Cruzeiro- 100 Cruzeiros coin 1992, 1993
Third Cruzeiro- 500 Cruzeiros coin 1992, 1993
Third Cruzeiro- 500 Cruzeiros coin 1992, 1993
Third Cruzeiro- 1000 Cruzeiros coin 1992, 1993
Third Cruzeiro- 1000 Cruzeiros coin 1992, 1993
Third Cruzeiro- 5000 Cruzeiros coin 1992
Third Cruzeiro- 5000 Cruzeiros coin 1992

Seventh Currency: Cruzeiro Real 1993-1994

The Cruzeiro Real (CR$) was introduced at a rate of 1000 Cruzeiros = 1 Cruzeiro Real and was subdivided into 100 centavos, but the sib-divided unit was never practically represented as either coins or banknotes. The only coins issued were composed of stainless steel and denominated into 5, 10, 50 and 100 Cruzeiro Reais.

Cruzeiro Real- 5 Cruzeiro Reais coin 1993, 1994
Cruzeiro Real- 5 Cruzeiro Reais coin 1993, 1994
Cruzeiro Real- 10 Cruzeiro Reais coin 1993, 1994
Cruzeiro Real- 10 Cruzeiro Reais coin 1993, 1994
Cruzeiro Real- 50 Cruzeiro Reais coin 1993, 1994
Cruzeiro Real- 50 Cruzeiro Reais coin 1993, 1994
Cruzeiro Real- 100 Cruzeiro Reais coin 1993, 1994
Cruzeiro Real- 100 Cruzeiro Reais coin 1993, 1994

This currency was different in many ways to the previous currencies issued since the first Cruzeiro in 1946. Its purpose was to allow the population to become accustomed to a stable currency. It was pegged to the US Dollar and there was a price parity program established. After 11 months, the Cruzeiro Real was replaced.

Eighth Currency: Real 1994-Present

The Real (R$) is a result of a substantial monetary, economic and currency reform put forth to end inflation that plagued the economy since 1956. It was introduced at a rate of 2750 Cruzeiro Reais = 1 Real and was divided into 100 centavos.

Coins issued were composed of stainless steel at first in denominations of 1, 5, 10 and 50 centavos and 1 Real. The obverse was common and the reverse was considered a generic design whose elements were similar between denominations. A 25 centavo coin was produced in 1995 as a vehicle for commemorative designs, but also had a standard design different from the other denominations in the series.

Real- centavo / Real common obverse coin design
Real- 1 centavo coin 1994 - 1997 Real- 5 centavos coin 1994 - 1997 Real- 10 centavos coin 1994 - 1997 Real- 50 centavos coin 1994, 1995 Real- 1 Real coin 1994

After four years, the stainless steel designs were replaced with cons containing higher value metal alloys in recognition of the intrinsic value of the currency the coins represented. The coins in the first series remain legal tender, but are being withdrawn from circulation.

Real- 1 centavo coin 1998 - 2004
Real- 1 centavo coin 1998 - 2004
Real- 5 centavos coin 1998 - present
Real- 5 centavos coin 1998 - present
Real- 10 centavos coin 1998 - present
Real- 10 centavos coin 1998 - present



Real- 25 centavos coin 1998 - present
Real- 25 centavos coin 1998 - present
Real- 50 centavos coin 1998 - present
Real- 50 centavos coin 1998 - present
Real- 1 Real coin 1998 - present
Real- 1 Real coin 1998 - present

The 1 and 5 centavo coins are composed of copper plated steel, the 10 and 25 centavo coins are composed of brass plated steel. The 50 centavo coin was made of copper-nickel until 2002 when the composition changed to stainless steel. The 1 Real coin was bi-metallic and composed of copper nickel with a brass ring until 2002, when the center was changed to stainless steel. In 2005, the 1 centavo coin was no longer being produced, but is still legal tender.

Despite its relatively young age, the Real seems to be a solid currency and has outlasted its predecessors in terms of stability.

2 comments:

  1. Would anybody out there know if the cruzado novo is still legal tender in brazil or if they could be exchanged for reals in brazil? Would also like to know if any kind of exchange could be done from within the usa (by internet or mail). If not exchangeable would they be of any value to a collector and if so how much?

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  2. I doubt that coins of the cruzado novo can be exchanged by a bank into real money. There tends to be a time limit on these types of new currency introductions. If the coins are in fairly good shape, they might be worth something to a collector.

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