Cruzeiros, Cruzados and derivative banknotes circulated in Brazil until the mid-1990s, when they were officially replaced by the real. However, many Brazilians still wonder if it is possible to exchange old banknotes and coins for the current currency.
The answer is no, as informed by the Central Bank to CNN .
Still, there are people who keep old banknotes. This week, the story of brothers who found a suitcase with almost 32 million escudos among their late father’s belongings went viral on social media.
In this case, for example, the Central Bank explained that it is not possible to exchange the Cruzado for the Real, as the Cruzado is an extinct monetary standard, whose collection period ended on July 31, 1989 for the Cz$ 1 and Cz banknotes. $5, and on September 30 of the same year for the Cz$10, Cz$50 and Cz$100 banknotes.
According to experts interviewed by CNN these old notes and coins have no financial value, but may attract the interest of collectors.
Mathematician specializing in investments Guylherme Mattos explains that, amid a scenario of high inflation, Brazil went through several currency exchanges until reaching the real, currently adopted.
“In view of the reforms to contain inflation, the Central Bank is unable to exchange an invalid currency, such as the Cruzeiro, for the current currency, the real”, stated Mattos.
However, Mattos highlights that cruise banknotes, Although they cannot be exchanged for reais, they have numismatic value — an estimate of their price on the collectors’ market .
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“This value varies depending on the rarity of the banknotes, their condition and demand in the collecting market. Well-preserved or limited edition banknotes, for example, can reach significant prices, being valued as historical and cultural pieces by collectors”, he added.
The master in Corporate Finance, João Fossaluzza, compares the cruise situation with a more recent example involving the 1 real banknote.
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“Brazilian legislation defines deadlines and procedures for exchanging currencies. After withdrawal from circulation, there is a specific period in which the population can make this exchange. An example was the 1 real banknote, which could be exchanged for the corresponding currency for a set period of time,” explains Fossaluzza.
Fossaluzza highlighted that there are frequent coin collectors’ fairs, where old notes are purchased to enrich enthusiasts’ collections. .
“If the notes found are well preserved, they may reach some value on the collectors’ market, but they cannot be used as currency at the Central Bank,” he concluded.
This content was originally published in Is it possible to exchange Cruzeiro and Cruzado banknotes at the bank? Understand on the CNN Brasil website.
Source: CNN Brasil
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