To understand the “Brazilian Real” better, let us compare it with the Indian “Rupee”. One Rupee = 100 pesos and 1 Real = 100 Centavos. As Rupee is the official currency of India, so is the Real of Brazil. As in India the banknotes are found in seven denominations e.g. 5, 10, 20, 50, 500 and 1000, in Brazil also the Real is found in seven denominations e.g. 1, 2, 5, 10, 20 and 100. In coins the Rupee has five denominations e.g. 50 Pisa, 1 rupee, 2 rupee, 5 rupees, and 10 rupees. In coins the Real has R$ 0.01, R$ 0.05, R$ 0.10, R$ 0.25, R$ 0.50 and R$ 1.00 at present.
As in India, bank notes and coins denoting lesser amounts have been discontinued, similarly, bank notes and coins denoting lesser amounts in Real have been discontinued. The most recent bank note that has been discontinued since 2006 is R$ 1.
Central Bank of Brazil has the sole authority over the production and distribution of the currency “Real “in Brazil just like Reserve Bank of India has over the currency” Rupee” in India.
For a very long time in the South American Continent “Real” had been an important currency, however in 1942 “Real” was reintroduced replacing “Cruziero”, the then official currency. The use of bank notes in India can be dated back to the year 1770 when Bank of Hindustan, introduced bank notes in India first. The modern Real was introduced in the year 1994 to stabilize the growing inflation.
The word “Rupee” has been derived from the Sanskrit word “ Rūpyakam” meaning silver. The word “Real” has been derived from the Portuguese word” Real” which gives a double meaning of “Royal” and “Real” both.