Brazilian Cruzeiro (1993–1994)

The Brazilian Real (BRL) is the currency of Brazil. It is subdivided into 100 centavos. The Central Bank of Brazil is the central bank and the issuing authority. The real was introduced on July 1, 1994, by the then president, Itamar Franco, replacing the Cruzado Novo at a rate of 1 real for every 1000 cruzados novos. The real is now the only currency in circulation in Brazil. The Brazilian real has been a relatively stable currency since its introduction. However, it has seen some volatility in recent years. In 2016, the real experienced a sharp depreciation against the US dollar, but it has since recovered somewhat. The real is issued in denominations of 5, 10, 20, 50 and 100 reais. The 5, 10 and 20 real notes are made of polymer, while the 50 and 100 real notes are made of cotton paper. The Brazilian real is a freely floating currency, and its exchange rate is determined by the foreign exchange market. It is pegged to the US dollar at a rate of 1 real = $0.19. The Brazilian real is widely used in international transactions, and is one of the currencies that make up the US dollar index.