Exchange your Brazilian Cruzados

Brazilian Cruzados Information

The Brazilian Cruzado (BRC) was the official currency of Brazil from 1986 to 1989, introduced during a period of significant economic instability and hyperinflation. The Cruzado was introduced as part of a monetary reform plan aimed at addressing Brazil’s rampant inflation, which had severely devalued the previous currency, the Cruzeiro. The Cruzado replaced the Cruzeiro at a rate of 1,000 Cruzeiros to 1 Cruzado, marking the start of a new economic strategy to stabilise Brazil’s troubled economy.

The introduction of the Cruzado was part of the Cruzado Plan, a broader set of economic measures implemented by the Brazilian government to control inflation and restore confidence in the national currency. The plan included a wage and price freeze, as well as the introduction of the Unidade Real de Valor (URV), a virtual currency used to adjust prices in the transition from the old currency to the new one. The government hoped that by introducing the Cruzado and implementing strict inflation controls, t…

The Cruzado was subdivided into 100 centavos, and the currency was issued in both coins and banknotes. Cruzado coins were available in denominations ranging from 1 to 100 centavos, while banknotes were issued in denominations of 10, 50, 100, 500, and 1,000 Cruzados. The designs of the Cruzado banknotes featured images of notable Brazilian figures, including political leaders, cultural icons, and scientists, reflecting the country’s rich history and diverse heritage.

Despite the government’s efforts, the Cruzado Plan ultimately failed to bring inflation under control. Within a year of its introduction, inflation rates began to rise again, reaching over 200% annually. The price and wage freeze proved unsustainable, and the government struggled to maintain the value of the Cruzado. As inflation spiralled out of control, the currency quickly lost value, and the Brazilian public lost confidence in the Cruzado.

In 1989, just three years after its introduction, the Cruzado was replaced by a new currency, the Cruzado Novo (BRN), at a rate of 1,000 Cruzados to 1 Cruzado Novo. This change was part of yet another attempt to stabilise the economy and control inflation. However, Brazil’s economic problems persisted for several more years, with inflation remaining a central issue throughout the 1990s.

The Cruzado is remembered as one of several failed attempts by the Brazilian government to control inflation and restore stability to the country’s economy during the 1980s and 1990s. While the currency was short-lived, its introduction marked a significant moment in Brazil’s ongoing struggle to overcome hyperinflation and achieve economic stability.

The introduction of the Real (BRL) in 1994, as part of the Real Plan, ultimately succeeded in stabilizing Brazil’s economy. The Real remains Brazil’s official currency to this day, but the Cruzado serves as a reminder of the economic challenges the country faced during a turbulent period in its history. Today, Cruzado coins and banknotes are no longer in circulation, but they are sought after by collectors for their historical significance.

In conclusion, the Brazilian Cruzado was introduced in 1986 as part of a broader economic reform plan to address inflation, but it was ultimately replaced in 1989 after failing to stabilize the economy.