|
Date
|
Changes
to the exchange rate regime
|
Real per U.S. Dollar
|
| 14 July 1948 | A par value for the Brazilian Cruzeiro was established by Brazil with IMF. However, later exchange transactions no longer take place at rates based on that par value. (IMF 1976, p.85) | |
| 13 February 1967 | A currency changeover was decreed, based on the exchange of 1,000 old Cruzeiros for one, new "heavy" Cruzeiro. The Brazilian New Cruzeiro, divided into 100 Centavos, was created, resulting in an Official Rate of NCr$2.700/2.715 per U.S. Dollar.
The principle of the "crawling" or "dynamic" peg, actually minidevaluations, was also adopted. (WCY 1984, p.113) | 2.700-2.715 |
| August 1968 | Brazil has followed a flexible exchange rate policy. (IMF 1976, p.85) | |
| 15 May 1970 | The term "New Cruzeiro" was replaced with the familiar name "Cruzeiro" (Cr$). (WCY 1984, p.113) | |
| 15 August 1971 | Following the floating of the U.S. Dollar, the Cruzeiro retained its exchange rate relationship to the American unit, thus effecting a de facto devaluation. (WCY 1984, p.113) | |
| 24 December 1971 | In the wake of the U.S. Dollar's de jure devaluation, Brasilia did not alter the Cruzeiro's exchange rate for the Greenback, thereby devaluing the Cruzeiro 7.89% in terms of gold. (WCY 1984, p.113) | |
| 1973 | From this year on, multiple Export Rates have been created via tax credits, export taxes and contribution quotas on specified commodites. (WCY 1985, p.128) | |
| 14 February 1973 | On the heels of another U.S. Dollar devaluation, the gold content of the Cruzeiro was reduced 7.2% effective, with the Official Rate revised to Cr$5.995/6.030 per U.S. Dollar.(WCY 1984, p.113) | 5.995-6.030 |
| 31 December 1974 | | 7.435 |
| 31 December 1975 | | 9.070 |
| 31 December 1976 | | 12.345 |
| 31 December 1977 | | 16.050 |
| 31 December 1978 | | 20.920 |
| 31 December 1979 | | 42.530 |
| 18 April 1980 | An Import Rate was created by the introduction of a 15% tax on purchases of foreign exchange for imports of goods and services, a de facto devaluation. (WCY 1984, p.113) | |
| 31 December 1980 | The tax on purchases of foreign exchange for imports of goods and services was revised to 25%, a de facto devaluation. (WCY 1984, p.113)
Import Rate: 81.88 | 65.500 |
| 31 December 1981 | Import Rate: 159.75 | 127.800 |
| September 1982 | A Resident Travel Rate was created, when a tax of 25% was placed on purchases of U.S. Dollars by Brazilian residents going abroad, a de facto devaluation. (WCY 1984, p.113) | |
| October 1982 | A Personal Remittancel Rate was created, when a tax of 25% was placed on purchases of foreign exchange for personal remittances abroad. (WCY 1984, p.113) | |
| December 1982 | The system of minidevaluations had reduced the Cruzeiro's Official Rate to Cr251.41/252.67 per U.S. Dollar. (WCY 1984, p.113) | 251.410-252.670 |
| 31 December 1982 | Import Rate 315.84; Travel Rate: 315.84; Remittance Rate: 315.84. | 252.670 |
| 18 February 1983 | A maxidevaluation of 23% slashed the Cruzeiro to Cr379.54/381.44 per U.S. Dollar.
Adjustments in the import and export tax structure changed the mixed foreign trade rates. (WCY 1984, p.113) | 379.540-381.440 |
| 11 March 1983 | The Resident Travel Rate and the Personal Remittance Rate were abolished. (WCY 1985, p.128) | |
| 31 December 1983 | Import Rate: 1102.08; 1131.60; 1230.00 (resulted from exchange tax of 12%, 15% or 25%. | 979.000-984.000 |
| 15 August 1984 | The fraction of the Cruzeiro designated as the Centavo was abolished. (WCY 1986-1987, p. 242) | |
| 31 December 1984 | Import Rate: 3566.00; 3662.00; 3980.00 (resulted from exchange tax of 12%, 15% or 25%. | 3,184.000 |
| 1 May 1985 | The Export Rate that had resulted from a 7% tax credit for specified exports was terminated, having been phased out over several months. (WCY 1986-1987, p. 242) | |
| 31 December 1985 | Financial/Import Rate: 13112.50 | 10,490.000 |
| 28 February 1986 | A currency changeover was effected by the creation of the Cruzado (Cz$) equal to 1,000 Cruzeiros and subdivided into 100 Centavos, with a fixed Official Rate of Cz$13.77/13.84 per U.S. Dollar. (WCY 1986-1987, p. 242) | 13.770-13.840 |
| 3 March 1986 | The "crawling-peg" system of minidevaluations was suspended.
A Financial Rate also exists, based on a tax of 25% on sales of foreign exchange for a number of current invisible transactions. (WCY 1986-1987, p. 242) | |
| 4 April 1986 | Exporters of gems and other precious stones were allowed to obtain gold from the Central Bank for their export proceeds. (WCY 1988-1989, p.246) | |
| 15 October 1986 | The Cruzado was downgraded 1.81% to Cz$14.02/14.09 per U.S. Dollar. | 14.020-14.090 |
| 21 November 1986 | A Coffee Export Rate was created by levying a contribution quota of 5% of the daily registration price for 60-kg bags of beans. (WCY 1986-1987, p. 242) | |
| 24 November 1986 | The "crawling-peg" adjustments of the exchange rate vis-a-vis the U.S. Dollar were resumed. (WCY 1986-1987, p. 242) | |
| 31 December 1986 | Financial/Import Rate: 18.60; Coffee Export Rate: 15.63. | 14.895 |
| 4 May 1987 | The Cruzado was cut 7.8% to Cz$27.46/27.59 buying and selling per Greenback. (WCY 1988-1989, p.246) | 27.460-27.590 |
| 16 June 1987 | The Cruzado was cut 7.8% to Cz$41.51/41.72 buying and selling per Greenback. (WCY 1988-1989, p.246) | 41.510-41.720 |
| 31 December 1987 | Financial Rate: 90.31 | 72.250 |
| 18 January 1988 | The Central Bank was authorized to request that payments for Brazilian investments abroad be made in gold rather than Cruzados. For profits remittances and capital repatriation, the Central Bank may pay out gold in exchange for surrendered foreign exchange. (WCY 1988-1989, p.246) | |
| 22 December 1988 | It was announced that with effect from January 9, 1989, a Floating Market Rate began operating, initially at Cz$1,300.00 per U.S. Dollar, which was to be kept close to the black rate. Nationals traveling abraod and showing a valid airline ticket could purchase up to US$4,000 at the new rate, which was also available for foreign tourists in Brazil exchanging the same amount. The latter could also use foreign credit cards for their purchases. (WCY 1988-1989, p.246) | |
| 31 December 1988 | Financial Rate: 956.63 | 765.000 |
| 16 January 1989 | A Novo Cruzado (NCz$) was created as 1,000 old Cruzados were exchanged for one new unit and a devaluation of 14.1% was decreed, resulting in a rate of NCz$0.996/0.999 per Greenback, buying and selling.
The Floating Market (Manual Market) Rate was NCz$1.20/1.50 per U.S. Dollar and was now to be determined freely bwtweeen participants. (WCY 1988-1989, p.246) | 0.996-0.999 |
| 18 April 1989 | The Novo Cruzado was devalued 3.1% to NCz$1.027/1.032 oer Greenback, buying and selling, in what was the first in a series of minidevaluations at irregular intervals. (WCY 1990-1993, p.244) | 1.027-1.032 |
| 20 April 1989 | The new rate was made applicable to the following remittance: equity (provided tax obligations were fulfilled), inheritances, pensions, and export guarantees.
In addition, a new National Treasury Note (NTN), the value of which was to vary according to the monthly inflation rate (indexed), was created for financial transactions. (WCY 1988-1989, p.246) | |
| 5 May 1989 | The Novo Cruzado was returned to a system of minidevaluations (daily exchange rate indexation). | |
| 15 June 1989 | The system of daily adjustments resumed, resulting in an effective Novo Cruzado Rate, which replaced the Official Rate. (WCY 1990-1993, p.249) | |
| 30 June 1989 | A 10.7% maxidevaluation was decreed to NCz$1.693/1.701 per U.S. Dollar and all foreign exchange transactions were to be directed only through the Central Bank.
A new National Treasury Bond (BTN-Cambia) carrying 6% interest and a two-year maturiry was issued to act as a hedge for contract operations in foreign currencies. It was to be adjusted daily based on the official value of the U.S. Dollar. (WCY 1988-1989, p. 247). | 1.693-1.701 |
| 31 December 1989 | Financial Rate: 14.16 | 11.330 |
| 13 March 1990 | The Effective Rate was devalued 10.7% to NCz$42.294/42.506 per U.S. Dollar buying and selling. (WCY 1990-1993, p. 244) | |
| 15 March 1990 | The Cruzeiro (Cr$), divided into 100 Centavos, replaced the Novo Cruzado at par. (WCY 1990-1993, p. 244) | |
| 16 March 1990 | An Interbank Rate was established for practically all transactions and was to be determined by supply and demand.
The Manual Market Rate and the Financial Rate Remained, but the Gold Payment Rate was abolished. (WCY 1990-1993, p. 244) | |
| 31 December 1990 | Financial Rate: 211.66 | 169.330 |
| 31 December 1991 | Financial Rate: 1335.94 | 1,068.700-1,068.800 |
| 5 May 1992 | The Central Bank announced that it would intervene in the floating (tourism) foreign exchange market, effecting a Manual Market Rate. (WCY 1990-1993, p. 244) | |
| 1 August 1993 | The Cruzeiro Real (CR$), plural Cruzeiro Reais, divided into 100 centavos, replaced the Cruzeiro at an exchange rate of 1,000 Cruzeiros=1.00 Cruzeiro Real. The external value of the unit would be determined by supply and demand in the interbank exchange market.
The Manual Market rate was at that time abolished. (WCY 1990-1993, p. 244) | |
| 31 December 1993 | | 326.095-326.105 |
| 1 March 1994 | A new unit of account (the Unit of Real Value or URV) was introduced at par to the U.S. Dollar, and the Central Bank promised to calibrate its rate daily, depending on inflationary expectations. The URV was to be used as the exchange denomination for certain contracts and prices, and it was to aid in the Central Bank's goal of maintaining a constant relationship between the Cruzeiro Real and the U.S. Dollar. (WCY 1990-1993, p. 244) | |
| 21 June 1994 | The financial transactions tax for purchases of foreign exchange for payment of contracts involving transfers of technology that are registered with the National Institute of Industrial Property was reduced to zero from 25 percent. (IMF 1995, p. 73) | |
| 1 July 1994 | The Real (R$), plural Reais, divided into 100 Centavos, replaced both the Cruzeiro Real and the URV at a conversion rate of 2,750 Cruzeiro Reais=1.00 Real. Any contract denominated in URV existing at that time was to be converted to Reais at the rate of 1:1. The Central Bank established a floor of R$1.00 per US$1.00 in the commercial market and vowed to utilized its international reserves to maintain the floor indefinitely. Failing the latter, the Bank said the exchange rate would then be determined by market forces. | 1.000 |
| 31 December 1994 | | 0.844-0.846 |
| 6 March 1995 | A new exchange rate system based on bands was introduced. The band was set at R$0.86-R$0.98 per U.S. Dollar. (IMF 1996, p. 73) | 0.860-0.980 |
| 10 March 1995 | The exchange rate band was changed to R$0.88-R$0.93 per U.S. Dollar. (IMF 1996, p.73) | 0.880-0.930 |
| 22 June 1995 | The exchange rate band was changed to R$0.91-R$0.99 per U.S. Dollar. (IMF 1996, p.73) | 0.910-0.990 |
| 31 December 1995 | | 0.973-0.977 |
| 30 January 1996 | The exchange rate band was set at R$0.97-R$1.06 per U.S. Dollar. (IMF 1996, p.74) | |
| 19 February 1997 | The adjustable band for the external value of the real was revised to R$1.05-R$1.14 per U.S. Dollar. (IMF 1998, p.140) | 1.050-1.140 |
| 2 May 1997 | The tax on foreign exchange transactions was eliminated. (IMF 1998, p.140) | |
| 20 January 1998 | The adjustable band for the external value of the Real was revised to R$1.12-R$1.22. (IMF 1998, p.141) | 1.120-1.220 |
| 31 March 1998 | The band was changed to R$1.1370-R$1.1420 per US$1. (IMF 1999, p.137) | 1.137-1.142 |
| 30 April 1998 | The spread of the band widened to 60 basis points from 50, the new band being R$1.1435-R$1.1495. (IMF 1999, p.137) | 1.144-1.150 |
| 13 January 1999 | The exchange rate band was widened to R$1.20-R$1.32 per US$1. (IMF 1999, p.137) | 1.200-1.320 |
| 1 February 1999 | The exchange rate became determined by market forces. The exchange rate arrangement was reclassified to "independently floating." The exchange rate was unified. (IMF 2000, p.141) | |
| 21 June 1999 | A presidential decree was issued adopting an inflation-targeting framework as the guide for monetary policy. (IMF 2000, p.141) | |
| 6 December 1999 | The tax applied to remittances related to obligations of credit card administration companies to pay for purchases by their cliens was reduced to 2% from 2.5%. (IMF 2000, p.141) | |
| 1 February 2000 | The IOF applied to remittances related to obligations of credit and administration companies was reduced to 2% from 2.5%. (IMF 2000, p.141) | |
The Exchange Rates listed in the right column, according to relative time), are:
Official Rate of Cruzeiro (1967--1986-02-27)
Official Rate of Cruzado (1986-02-28--1989-01-15)
Official Rate of Novo Cruzado (1989-01-16---1989-06-14)
Effective Rate of Novo Cruzado (1989-06-15---1990-03-15)
Interbank Rate of Cruzeiro, determined by supply and demand (1990-03-16---1993-07-31)
Interbank Rate of Cruzeiro Real, determined by supply and demand (1993-08-01---1994-06-30)
Interbank Rate of Real (1994-07-01--1995-03-05)
Interbank Rate of Real, subject to an exchange rate band (1995-03-06----1999-01-17)
Interbank Rate of Real, independely floating (1999-01-18----)
