While a considerable amount of money makes its way from the United States to Brazil as remittances each year, some money flows in the other direction as well. In 2016, around U.S. $602 billion was sent from the U.S. to Brazil, and around $49 million was sent from Brazil to the U.S. These numbers only account for personal transfers.
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- Min Transfer Amount
- Two Transfers Fee Free
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- $250 / £100 / €250
The United States adopted the dollar in its currency form as its official currency in 1792. The U.S. dollar is also used as the sole currency in the British Virgin Islands, two British Overseas Territories, the Caribbean, and Turks and Caicos Islands. Its use alongside other currencies is prevalent in places such as Belize, Zimbabwe, Haiti, Panama, Liberia, Costa Rica, Cambodia, and Myanmar.
The absolute decoupling of the U.S. dollar from the gold standard took place in 1973. It is estimated that around U.S. $5.1 trillion passes through the forex market each day. In April 2016, the global forex market turnover share of the U.S. dollar stood at more than 87%. The U.S. dollar is the world’s most traded currency and is it is also tops the list of reserve currencies.
|Nicknames||Buck, moolah, paper, dough, dead presidents, |
bones, greenback, green
|Bank notes||$1, $2, $5, $10, $20, $50, $100|
|Coins||1c, 5c, 10c, 25c, 50c, $1|
Brazil adopted the modern real on 1 July, 1994. The move came about as a part of the country’s plan to stabilize its economy. The new real replaced the relatively short-lived cruzeiro real. Unlike most parts of the world, Brazil uses commas to separate decimals and periods to separate thousands.
The first set of real coins launched in 1994 was in use till 1997. The second series that was introduced in 1998 continues to remain in use.
In April 2016, the Brazilian real’s share of the global forex market turnover stood at around 1%.
|Currency symbol||- two vertical strokes, not one, R$|
|Bank notes||R$2, R$5, R$10, R$20, R$50, R$100|
|Coins||5, 10, 25, and 50 centavos, R$1|
U.S. Dollar / Brazilian Real Historical Rates
Upon the introduction on the real in 1994, it was valued at 2,750 cruzeiros reais, making it exactly worth one U.S. dollar. Significant inflow of capital into Brazil during the mid-90s saw the real gain in value against the U.S. dollar, and at one point one real valued at U.S. $1.20.
The Central Bank of Brazil kept a check on the exchange rate of the real from 1996 to 1998, making sure that the depreciation of the real against the U.S. dollar was gradual. During this period, the value of one U.S. dollar hovered at around R$1.10.
The Russian default that disrupted international markets in early 1999 led the central bank of Brazil to float its currency’s exchange rate. The real devalued quickly, trading at around R$2 to one U.S. dollar. The devaluation of the real from 1999 to the end of 2002 was gradual again.
Even before Luiz Inácio Lula da Silva took office in 2003, the real had dropped to its lowest levels, trading at R$4 to one U.S. dollar. The crisis did not last long, and the real got back to R$2 to one U.S. dollar by 2005. In May 2007, the value of one real exceeded U.S. $0.50 for the first time since 1999.
The real’s fall value against the U.S. dollar in the last decade has been noticeable. This is because of factors such as the Petrobas corruption scandal, the downgraded credit rating by Moody’s that followed, as well as the austerity plan put in place by President Dilma Rousseff.
USD/BRL in the last five years
|U.S. $1 =|
|1 July, 2013||R$ 2.2245|
|1 July, 2014||R$ 2.2025|
|1 July, 2015||R$ 3.1411|
|1 July, 2016||R$ 3.2352|
|1 July, 2017||R$ 3.3037|
USD/BRL in the last five months
|U.S. $1 =|
|1 March,2018||R$ 3.2516|
|1 April, 2018||R$ 3.3035|
|1 May, 2018||R$ 3.5076|
|1 June, 2018||R$ 3.7765|
|1 July, 2018||R$ 3.8771|
What Affects USD/BRL Rates?
Policies of the U.S. Federal Reserve and the Central Bank of Brazil tend to have an effect on the USD/BRL currency pair. Interest rate changes in the U.S. that have a bearing on emerging markets seeking foreign investments usually have a cascading effect on the Brazilian real. The growing commercial and trade interest of China and other Asian nations in Brazil along with policy changes that they make also affect the real’s value to some extent.
While banks in both countries give their customers the ability to carry out cross-border transfers, a number of specialist money transfer companies that have emerged in the last two decades seem to offer better value for money. This, they are able to do, by offering highly competitive exchange rates and charging little to no fees.
All you need to do when you wish to send money from the U.S. to Brazil, or the other way around, is to look for money transfer companies according to where you live and run a thorough comparison.