75 YEARS OF THE BRAZILIAN CRUZEIRO
October 5 marks the 75th anniversary of Cruzeiro, a currency that did not have a good track record due to inflation and its economic plans, which did not have the expected effect, and failed, unfortunately ended in 1994 with the Plan Real.
Decree-Law No. 4.791, dated 10.05.1942, instituted the CRUZEIRO as the Brazilian monetary unit, equivalent to one Thousand-Réis. The cent was created, corresponding to the hundredth part of the cruise.
Cruzeiro (Cr$) was the currency of Brazil from 1942 to 1967, from 1970 to 1986 and from 1990 to 1993. Its adoption took place for the first time in 1942, during Estado Novo, in the first change of monetary standard in the country, With the purpose of unifying the money in circulation. A Cruzeiro was worth a thousand reis. The Cruzeiro underwent a monetary reform in the government Castelo Branco, being replaced temporarily by the New Cruzeiro. The currency was replaced by the team of President José Sarney, with the Cruzado Plan; Cruzeiro was reinstated in the Collor government and was definitively replaced by the Real Cruzeiro in 1993, and Provisional Measure no. 336, dated July 28, 1993, transformed Cruzeiro (Cr$) into Cruzeiro Real (CR$) Of CR$ 1.00 per Cr$ 1,000.00, when it was definitively replaced by the Real on June 29, 1994.
Name Origin
One of the first suggestions of Cruzeiro for the name of currency in Brazil was made by the economist Carlos de Sousa in November 1926 in his book Restoration of the Currency in Brazil, where he resumed his recommendation for the improvement of the currency (already exposed in 1924 in his other Book Monetary Anarchy and its Consequences) and where it proposed to replace the Thousand-Reis unit with that of Cruzeiro, if this is the chosen name.
However, the name Cruzeiro had already been proposed by Americo Lobo, as stated in the Annals of the Federal Senate of Brazil, on September 21, 1891, replacing the Real, a nomenclature considered by some, at the time, an unwanted Portuguese inheritance.
Projects
Before the actual adoption of the currency, there was the project of making the Thousand-Réis convertible.
However, these projects ran into several different issues in the market, issued by Caixa de Conversão, Banco do Brasil and the National Treasury, making it difficult to organize everything in a single pattern, especially by the occurrence of goodwill between the Convertible notes and those not convertible into gold.
With the interest of better organizing the issues of paper money, there was the project to create the Gold Cruzeiro, which would have its quotation established at the fixed value of 10 thousand "inconversible" reis.
However, because of the Crash of 1929 and the Revolution of 1930 this project was abandoned and only in 1942 was launched the Cruzeiro as a substitute for the Thousand-Reis, with the difference that the Cruzeiro, issued in a situation of war, was not convertible And was equated to the ancient currency in the ratio of a cruzeiro by Thousand-Reis.
75 Years of the Brazilian Cruzeiro
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