While a considerable amount of money flows from the UK to Brazil, a tidy sum travels in the other direction as well. In 2016, Brazilian migrants in the UK sent around U.S. $83 million to their home country. In the same year, around U.S. $4 million made its way from Brazil to the UK as remittances. Trade between both countries in 2016 accounted for around £5.4 billion.
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The pound, as a unit of currency, came into being during Medieval England. Introduced in 775 AD, it is the world’s oldest currency that still remains in circulation. Other than the UK, the use of the pound sterling is also seen in Isle of Man, Guernsey, Tristan da Cunha, Jersey, South Georgia and the South Sandwich Islands, and the British Antarctic Territory.
The pound sterling remained the world’s primary reserve currency for over a century, until after the Second World War. Stringent government regulations followed, which, along with the seemingly uncompromising labor market of the time, caused stagnation in the region’s economy. The pound sterling is now forth on the list of global reserve currencies and it is also the fourth most commonly traded currency.
In April 2016, the pound sterling accounted for 12.8% of the international foreign exchange market turnover.
|Nicknames||Quid, pound, bread, moolah, nicker, bones, |
dough, readies, folding stuff, paper
|Bank notes||GBP 1, GBP 5, GBP 10, GBP 50, GBP 100|
|Coins||1p, 2p, 5p, 10p, 20p, 50p, GBP 1, GBP 2|
The Brazilian real was adopted as the country’s official currency on 1 July, 1994, at which point it replaced the then existing cruzeiro real. The move was part of the country’s attempt to end close to 30 years of inflation.
While the first set of real-denominated coins was introduced in 1994, these coins were used only until 1997. The coins that were introduced in 1998 continue to remain in circulation. In Brazil, periods separate thousands whereas commas separate decimals.
In April 2016, the share of the real in the international forex market turnover was around 1%, making it the world’s 19th most commonly traded currency.
|Currency symbol||- two vertical strokes, not one, R$|
|Bank notes||R$2, R$5, R$10, R$20, R$50, R$100|
|Coins||5, 10, 25, and 50 centavos, R$1|
Pound Sterling / Brazilian Real Historical Rates
When introduced, the Brazilian real was at par with the U.S. dollar and traded at around R$1.5 against the pound sterling. The value of the real began rising unexpectedly soon after, against the U.S. dollar as well as the pound sterling. This was mainly because of large capital inflows into Brazil. Toward the end of 1994 and in early 1995, the real traded at around R$1.3 against the pound sterling.
The Central Bank of Brazil stepped in to control the currency’s appreciation, and until 1998, the real depreciated gradually, trading at below R$2 against the pound sterling. The Russian Default of 1998 caused the Central Bank of Brazil to float the real’s exchange rate, and by January 1999, the real was trading at over R$3.4 against the pound sterling.
From then until mid 2002, the value of the real dropped gradually again. However, the arrival of the leftist Luiz Inácio Lula da Silva resulted in financial uncertainty, high inflation, and a currency crisis of sorts. By September 2002, the real was trading at close to R$6 against the pound sterling. Once in office, Lula and his finance minister did reasonably well to put investor and public sentiment at ease.
Other than slight downward swings in mid 2004 and the global economic crisis of 2008, the real then began appreciating in value fairly consistently till around mid 2011. In June 2011, the real traded at around R$2.5 against the pound sterling. The real then started depreciating again, and the region’s economic crisis of 2015 did little good for its exchange rate. By October 2015, the real was trading at close to R$6 against the pound sterling for a second time.
The real recovered slightly until early 2017, trading at around R$3.8 against the pound sterling in March 2017. Then, it started to depreciate again.
GBP/BRL in the last five years
|GBP 1 =|
|1 July, 2013||R$ 3.4631|
|1 July, 2014||R$ 3.8228|
|1 July, 2015||R$ 5.3453|
|1 July, 2016||R$ 4.2945|
|1 July, 2017||R$ 4.1315|
GBP/BRL in the last five months
|GBP 1 =|
|1 March, 2018||R$ 4.6330|
|1 April, 2018||R$ 4.8300|
|1 May, 2018||R$ 4.9524|
|1 June, 2018||R$ 5.1211|
|1 July, 2018||R$ 4.9323|
What Affects GBP/BRL Rates?
The GBP/BRL exchange rate has experienced considerable volatility in the last couple of decades. Reasons for the real’s depreciation in the past have included the corruption scandal at state-owned Petrobas, the downgrading by Moody’s, as well as the austerity plans set in motion by President Dilma Rousseff.
Factors that tend to have an effect on how the GBP/BRL currency pair performs include trade relations between both countries, their interest rate differential, their gross domestic product (GDP), as well as any changes in monetary policies they might implement.
If you plan to send money from the UK to Brazil, or if you wish to transfer funds from Brazil to the UK, take time to compare some of the top overseas money transfer companies. This is because they tend to offer different GBP/BRL exchange rates and some of them charge little to no fees.