The Brazilian Real: What is the currency of Brazil?
- Rachel
- 2 days ago
- 3 min read
The official currency of Brazil is the Brazilian Real. Its ISO code is BRL and its symbol is R$. The currency is issued and regulated by the Central Bank of Brazil (Banco Central do Brasil), which is the authority responsible for monetary policy and financial system stability in the country.
The term “real” comes from the Portuguese word for “royal” and has historical significance. Brazil used a currency called the real during the colonial period and the imperial era, but it was replaced by the cruzeiro in 1942. The modern real was introduced later, in 1994, as part of the Plano Real (Real Plan), a government economic stabilisation program aimed at curbing hyperinflation that had affected Brazil in the late 1980s and early 1990s.
The Brazilian real is subdivided into 100 centavos. Coins come in denominations of 5, 10, 25 and 50 centavos, and 1 real. Banknotes are issued in 2, 5, 10, 20, 50, 100 and 200 real denominations. Each banknote features a portrait of the Efígie da República, a representation of the Republic of Brazil, on one side and native Brazilian fauna on the reverse. For example, the 20 real note features a golden lion tamarin, and the 50 real note features a jaguar.
History of the Brazilian Real
The introduction of the real in 1994 was a significant event in Brazil’s economic history. At the time, Brazil faced inflation rates that exceeded 2 000 percent per year. The Plano Real included a series of fiscal and monetary reforms, along with a currency reform that introduced the real as a stable unit of account. The initial exchange rate of the real was set at parity with the United States dollar. However, in 1999 the government adopted a floating exchange rate system and the value of the real began to fluctuate according to market conditions.
As of 2025, the value of the real varies against major world currencies such as the United States dollar and the euro, depending on economic factors including interest rates, inflation, fiscal policy and global commodity prices. Brazil’s economic dependence on exports such as soybeans, oil and iron ore can influence the currency’s performance.
In practice, the Brazilian real is the only legal tender in Brazil. Foreign currencies are not accepted in shops or for payment of goods and services, although they can be exchanged at authorised currency exchange offices or banks. Credit cards are widely used in Brazil, especially in urban centres, but cash remains common for day-to-day transactions in smaller towns and rural areas.
There are restrictions on the amount of currency that can be brought in or out of Brazil without declaration. According to the Central Bank of Brazil, any amount over 10 000 BRL or equivalent in foreign currency must be declared at customs when entering or leaving the country.
How do you pronounce Real (Brazilian Currency)?
Here is how to pronounce Real with proper Brazilian Portuguese pronunciation, remembering that the "r" is pronounced as an English "h":
Real (singular - 1 real): hey-al
Reais (plural - 2 reais): hey-ice
Do I need to bring cash when travelling to Brazil?
Most travellers will not need to carry large amounts of cash in Brazil. Credit cards are accepted at most hotels, restaurants, shops, and even by street sellers. For some transport services such as local bus trips, or the canoe in Caraiva, and for travelling in rural areas such as in the Amazon Rainforest, a small amount of cash can be useful. Travellers should carry only what is needed for these situations.
When cash is required, the best option is to withdraw from local ATMs using a bank card. For guidance on avoiding high fees and choosing the most reliable ATM networks, see my post on the best ATM to use in Brazil.
More resources for planning your trip to Brazil
Find cheap bus, ferry, and private transfer tickets on Bookaway, where you can make reservations ahead of time from abroad. For more information on traveling by bus, read my full guide to taking long-distance busses in Brazil.
Book your accommodation on Booking.com, with thousands of options ranging from luxury hotels to budget-friendly backpacker hostels, there's something for everyone
Don't forget to read my packing check-list for Brazil
Finally, read this post to find out 10 things you should do before you travel to Brazil!