Brazil attracts tourists year-round as the South American nation is home to the Amazon rainforest, the Carnival festival, and much more.
It is also a present-day economic powerhouse. Brazil has the eighth-largest economy in the world as measured by gross domestic product (GDP). And Brazil’s currency, the real, plays a significant role in the global market.
If you plan on visiting Brazil or sending money to loved ones in Brazil, it helps to know a little about the real. This article covers everything you need to know about the Brazilian currency including its denominations and history. You’ll also find tips for exchanging the country’s currency during your travels.
What is the currency in Brazil?
The currency of Brazil is the real (plural: reais), represented by the symbol R$ and the currency code BRL. Reais are divided into centavos (1 real = 100 centavos).
Real banknotes range from R$2 to R$200 in the following denominations:
- R$2
- R$5
- R$10
- R$20
- R$50
- R$100
- R$200
Coins are minted in the following denominations:
- 5 centavos
- 10 centavos
- 25 centavos
- 50 centavos
- R$1
The Banco Central do Brasil (Central Bank of Brazil) manages the country’s monetary policy, which influences the real’s inflation rate and value. As a floating exchange rate currency, the Brazilian real’s exchange rate fluctuates daily. The Casa da Moeda do Brasil, the Brazilian mint, produces banknotes and coins.
The front of all real banknotes features a sculpture known as the “Effigy of the Republic,” a representation of a woman wearing a crown of bay leaves that is an important symbol in Brazil.
History of the Brazilian real
Brazil, a former Portuguese colony, has faced centuries of economic instability and uncertainty. As a result, Brazilian currency has changed multiple times. In the past, currencies were introduced to change monetary policy, curb inflation, and stabilize the economy.
Although European conquerors made the country’s first coins decades earlier, Brazil’s monetary system began in earnest in 1694 when King Peter II of Portugal established the country’s first mint. The country began issuing banknotes in 1835, 13 years after gaining independence from Portuguese rule.
Here’s a look at the various Brazilian currencies throughout its history:
| Currency | Time period |
| Portuguese real | 16th-18th centuries |
| Réis | 1747-1942 |
| First cruzeiro | 1942-1967 |
| Cruzeiro novo | 1967-1970 |
| Cruzado | 1986-1989 |
| Cruzado novo | 1989-1990 |
| Cruzeiro real | 1993-1994 |
| Brazilian real | 1994-present |
The current Brazilian real was initially pegged to the US dollar (USD) to control inflation. However, faced with slowing capital flows in 1999, the real shifted to a floating exchange rate system. The currency quickly devalued against the dollar by more than half but eventually stabilized, maintaining its floating rate.
7 tips for exchanging US dollars for Brazilian real
Because it moves with the market forces of supply and demand for foreign exchange, the floating rate Brazilian real’s value is constantly changing. These tips can be helpful if you’re looking to exchange your dollars for Brazil’s currency or send money to Brazil.
1. Research and compare exchange rates
Before you select a money exchange service, compare rates across several options to ensure you receive a good exchange rate for your dollars.
Exchange rates vary depending on where you convert your currency to Brazil’s money. Authorized money exchangers include banks, exchange kiosks (called casas de câmbio), airports, and online platforms.
You can convert up to $3,000 at an authorized exchange service with a government-issued ID. If you need to exchange more money, you’ll be required to fill out additional documentation.
One way to stay on top of the exchange rates for Brazilian currency is to track live exchange rates. Be sure to factor in the commissions and fees you might be charged for your exchange.
2. Notify your bank ahead of traveling
To protect against fraud, your bank may flag or block your card if it identifies suspicious activity. Your transactions in Brazil could be flagged if your bank is unaware of your travel plans.
Therefore, it’s best to let your bank or credit card company know about your plans ahead of time so you maintain full access to your credit cards and bank account. Plus, your bank may offer advice on how to exchange your money or access other financial services while traveling.
Some banks and credit card companies let you notify them of your travels via their online platforms or mobile apps. Otherwise, you may have to call or stop by a branch.
3. Avoid exchanging money at airports, hotels, and tourist areas
Tourist areas are not the best places to exchange money in Brazil. Money exchanges in places like Rio de Janeiro and São Paulo are known to take advantage of tourists by offering poor exchange rates. It’s also against the law in Brazil to exchange currency with unauthorized agents, which are prevalent in major tourist areas.
While airports and hotels will have legitimate exchange services, they’ll likely offer unfavorable exchange rates, so it’s best to find other money exchange options.
4. Consider commissions and fees
When exchanging US dollars for Brazil’s currency, you may encounter several different types of fees. Take note of these charges as you research and compare exchanges:
- Exchange rate spread: The price difference between buying and selling currency
- Transaction fee: A fixed fee for using an exchange
- Withdrawal fee: A typically flat fee charged for withdrawing currency from ATMs
- Card processing fee: A percentage rate for using a foreign credit or debit card
- Dynamic currency conversion (DCC): Charged when paying using a foreign currency
5. Opt to be charged in the Brazilian currency when withdrawing money from ATMs
Major Brazilian banks like Banco do Brasil, Bradesco, Itaú, and Santander often have ATMs that accept international cards. These ATMs are a good place to exchange foreign currency because they are easily accessible and generally don’t have high fees. The withdrawal limit from ATMs is usually R$1,000, but it may be lower depending on the ATM. It’s advisable to withdraw cash in Brazilian currency to avoid additional fees that might come with taking out foreign currency.
6. Exchange money in Brazil instead of the US
You can easily convert US dollars to Brazilian real currency within Brazil. Exchanging your money once you get to Brazil will generally be your best option, as finding a money exchange service with reais in the United States is harder. Even if you do find a bank or exchange service in the US that will give you reais, it’ll likely be at a poor exchange rate. Further, if you convert currency at home and carry more than R$10,000 into the country, you’ll be required to submit a declaration of goods at customs.
For these reasons, it’s best to wait until you arrive in Brazil to exchange money and get the reais you need for your trip.
7. Use reputable exchanges
The Banco Central do Brasil authorizes financial institutions to exchange money. Authorized banks, exchange bureaus, and other financial businesses are considered safe to use. However, it may be hard to find money exchangers outside of major cities and tourist areas.
Western Union also has agent locations throughout Brazil where you can exchange money. Or you can use the Western Union® app to convert currency online. Technology like Touch ID, transfer tracking, and data encryption help keep your transactions safe.
Using money in Brazil
The real is what you’ll use to make payments in Brazil. It’s the only currency used as legal tender throughout the country. Here’s what you need to know about using Brazilian currency during your trip.
Can you use US dollars in Brazil?
According to local law, the Brazilian real is the only currency accepted as legal tender in Brazil. That said, some merchants might accept US dollars in bigger cities.
Converting your dollars to reais will help you get a better value, ensure your money’s accepted everywhere, and avoid confusion calculating the exchange rate at the time of purchase.
Tipping etiquette in Brazil
While tipping isn’t as prevalent in Brazil as in the US, it is a common practice — particularly for exceptional service. Most restaurants add a 10% service charge to the check that goes toward service staff. If they don’t, it’s customary to leave 10% if you’re happy with the service. The same goes for tour guides and drivers.
In other situations, like at cafés and bars, you can provide a tip, or “gorjeta,” for exceptional service, but it’s generally not expected.
Where to get Brazilian real near me?
You can easily find a currency exchange near you in major Brazilian cities and tourist destinations. Authorized Western Union agents, for example, offer USD to BRL exchanges in person. Or you can always use the Western Union® mobile app or website to complete your exchange digitally.
FAQs
Can I use my credit card in Brazil
Most major credit cards are accepted for payment in Brazil. When using your credit card, you will be charged a tax on your transaction known as IOF (Imposto sobre Operações Financeiras, or Tax on Financial Operations).
Can I use my debit card in Brazil?
Yes, you can use your debit card in Brazil at most merchants. Smaller street vendors or businesses in rural areas may only accept cash, so it is a good idea to carry some cash with you wherever you go. Also, notify your bank ahead of time so they don’t flag your debit card transactions as fraudulent.
What is the exchange rate for Brazilian reals to US dollars?
The Brazilian real is a floating rate currency, so its value changes daily. You can get today’s USD to BRL exchange rate or send money to Brazil instantly with Western Union.
Can I exchange money through Western Union in Brazil?
Yes, you can visit one of the many Western Union agent locations across Brazil to exchange money or utilize the Western Union® mobile app while traveling.
