What Money Does Brazil Use? Currency Guide for Travelers

What Money Does Brazil Use? The Brazilian Real (BRL), symbolized as R$ and subdivided into 100 centavos, is the official currency of Brazil, plays a crucial role in its economy and is essential for visitors and those sending money. Knowing the ins and outs of the BRL can help you navigate financial transactions and make the most of your travels or remittances, and at money-central.com, we provide comprehensive insights into currency management and international finance. In this guide, you’ll learn about the history, denominations, and practical tips for exchanging currency, ensuring you’re well-prepared for any financial scenario.

1. Understanding the Brazilian Real (BRL)

The Brazilian Real (BRL), represented by R$ and divided into 100 centavos, is the official currency of Brazil, so understanding it is crucial for anyone traveling to or doing business in the country. To help you navigate your financial transactions smoothly, here’s an in-depth look:

Currency Symbol and Code: R$ (symbol) and BRL (currency code)
Denominations:
- Banknotes: R$2, R$5, R$10, R$20, R$50, R$100, and R$200
- Coins: 5, 10, 25, and 50 centavos, and R$1

Alt Text: Assorted Brazilian Real banknotes of varying denominations laid out on a flat surface.

1.1. Who Manages the Brazilian Real?

The Banco Central do Brasil (Central Bank of Brazil) manages the country’s monetary policy, which influences the real’s inflation rate and value. As a floating exchange rate currency, the Brazilian real’s exchange rate fluctuates daily, so it’s essential to stay informed.

1.2. History of the Brazilian Real

Brazil, a former Portuguese colony, has faced centuries of economic instability and uncertainty. As a result, Brazilian currency has changed multiple times. In the past, currencies were introduced to change monetary policy, curb inflation, and stabilize the economy.

Although European conquerors made the country’s first coins decades earlier, Brazil’s monetary system began in earnest in 1694 when King Peter II of Portugal established the country’s first mint. The country began issuing banknotes in 1835, 13 years after gaining independence from Portuguese rule.

Here’s a look at the various Brazilian currencies throughout its history:

Currency	Time Period
Portuguese real	16th-18th centuries
Réis	1747-1942
First cruzeiro	1942-1967
Cruzeiro novo	1967-1970
Cruzado	1986-1989
Cruzado novo	1989-1990
Cruzeiro real	1993-1994
Brazilian real	1994-present

The current Brazilian real was initially pegged to the US dollar (USD) to control inflation. However, faced with slowing capital flows in 1999, the real shifted to a floating exchange rate system. The currency quickly devalued against the dollar by more than half but eventually stabilized, maintaining its floating rate.

2. Can You Use US Dollars In Brazil?

While the official currency of Brazil is the Brazilian Real (BRL), you might wonder if US dollars are accepted. According to local law, the Brazilian real is the only currency accepted as legal tender in Brazil. However, some merchants, especially in larger cities and tourist areas, might accept US dollars. While it might seem convenient, there are several reasons why using BRL is a better choice:

Better Value: Converting your dollars to reais will generally get you a better exchange rate than if a merchant offers an on-the-spot conversion.
Wider Acceptance: Not all establishments accept USD, so using BRL ensures you can make purchases anywhere.
Avoiding Confusion: Using the local currency eliminates any confusion when calculating exchange rates at the time of purchase.

Therefore, exchanging your USD for BRL is advisable to ensure smooth transactions and get the best value for your money.

3. What Are The Best Ways to Exchange US Dollars for Brazilian Real?

Because it moves with the market forces of supply and demand for foreign exchange, the floating rate Brazilian real’s value is constantly changing. For those looking to exchange US dollars for Brazilian Reais, several options are available, each with its own advantages and considerations.

3.1. Banks and Credit Unions

Pros: Established institutions, secure transactions.
Cons: May offer less competitive exchange rates and charge higher fees.

3.2. Currency Exchange Services (Casas de Câmbio)

Pros: Specializes in currency exchange, potentially better rates than banks.
Cons: Rates and fees can vary widely; research and compare before committing.

3.3. Airports and Hotels

Pros: Convenient, especially upon arrival.
Cons: Typically offer the least favorable exchange rates and highest fees.

3.4. Online Platforms

Pros: Convenient, often competitive rates, and lower fees.
Cons: Requires careful research to ensure the platform is reputable and secure.

3.5. ATMs

Pros: Widely accessible, can be a convenient way to withdraw local currency.
Cons: Withdrawal fees, unfavorable exchange rates, and potential for additional charges from your bank.

3.6. Tips for Exchanging Currency

Research and Compare Exchange Rates: Before you select a money exchange service, compare rates across several options to ensure you receive a good exchange rate for your dollars. Exchange rates vary depending on where you convert your currency to Brazil’s money. Authorized money exchangers include banks, exchange kiosks (called casas de câmbio), airports, and online platforms.
Notify Your Bank Ahead of Traveling: To protect against fraud, your bank may flag or block your card if it identifies suspicious activity. Your transactions in Brazil could be flagged if your bank is unaware of your travel plans. Therefore, it’s best to let your bank or credit card company know about your plans ahead of time so you maintain full access to your credit cards and bank account. Plus, your bank may offer advice on how to exchange your money or access other financial services while traveling.
Avoid Exchanging Money at Airports, Hotels, and Tourist Areas: Tourist areas are not the best places to exchange money in Brazil. Money exchanges in places like Rio de Janeiro and São Paulo are known to take advantage of tourists by offering poor exchange rates. It’s also against the law in Brazil to exchange currency with unauthorized agents, which are prevalent in major tourist areas. While airports and hotels will have legitimate exchange services, they’ll likely offer unfavorable exchange rates, so it’s best to find other money exchange options.

Alt Text: A sign indicating a currency exchange service with various currency symbols displayed.

4. Understanding Commissions and Fees When Exchanging Currency

When exchanging US dollars for Brazil’s currency, you may encounter several different types of fees. Here are the fees to take note of as you research and compare exchanges:

Exchange Rate Spread: The price difference between buying and selling currency.
Transaction Fee: A fixed fee for using an exchange.
Withdrawal Fee: A typically flat fee charged for withdrawing currency from ATMs.
Card Processing Fee: A percentage rate for using a foreign credit or debit card.
Dynamic Currency Conversion (DCC): Charged when paying using a foreign currency.

Major Brazilian banks like Banco do Brasil, Bradesco, Itaú, and Santander often have ATMs that accept international cards. These ATMs are a good place to exchange foreign currency because they are easily accessible and generally don’t have high fees. The withdrawal limit from ATMs is usually R$1,000, but it may be lower depending on the ATM. It’s advisable to withdraw cash in Brazilian currency to avoid additional fees that might come with taking out foreign currency.

5. Exchanging Money in Brazil vs. the US: Which is Better?

When planning a trip to Brazil, one common question is whether to exchange currency in your home country (e.g., the US) or wait until you arrive in Brazil. There are pros and cons to each approach, but generally, exchanging your money once you get to Brazil will be your best option, as finding a money exchange service with reais in the United States is harder. Here’s a detailed comparison to help you decide:

5.1. Exchanging in the US

Pros:
- Convenience: Having local currency in hand upon arrival.
- Budgeting: Knowing the exact exchange rate beforehand can help with budgeting.
Cons:
- Poor Exchange Rates: You’ll likely get a less favorable exchange rate compared to what’s available in Brazil.
- Limited Availability: Finding Brazilian Reais in the US can be challenging, and not all banks or exchange services offer it.
- Higher Fees: Banks and exchange services in the US may charge higher fees for handling less common currencies.

5.2. Exchanging in Brazil

Pros:
- Better Exchange Rates: Generally, you’ll find more competitive exchange rates in Brazil.
- Wider Availability: Exchange services are readily available in major cities and tourist areas.
Cons:
- Time Consuming: You’ll need to spend time finding and visiting an exchange service after arrival.
- Security: Carrying a large amount of foreign currency can be risky.
- Fluctuating Rates: Exchange rates can fluctuate, so you may not get the exact rate you anticipated.

5.3. Key Considerations

Currency Declaration: If you convert currency at home and carry more than R$10,000 into the country, you’ll be required to submit a declaration of goods at customs.
Market Conditions: Keep an eye on exchange rates before your trip to determine the best time to exchange your money.

Alt Text: Hands exchanging US dollar bills across a table.

6. What Is Tipping Etiquette In Brazil?

While tipping isn’t as prevalent in Brazil as in the US, it is a common practice — particularly for exceptional service. Knowing when and how much to tip can enhance your experience and show appreciation for good service. Here’s a guide to tipping etiquette in Brazil:

Restaurants: Most restaurants add a 10% service charge to the check that goes toward service staff. If they don’t, it’s customary to leave 10% if you’re happy with the service.
Tour Guides and Drivers: A tip of 10% is also appreciated for tour guides and drivers who provide excellent service.
Cafés and Bars: In other situations, like at cafés and bars, you can provide a tip, or “gorjeta,” for exceptional service, but it’s generally not expected.
Other Services: For services like hairdressers or spa treatments, a 5-10% tip is common if you are satisfied with the service.
Porters and Hotel Staff: It’s customary to tip porters R$2-R$5 per bag and housekeeping staff R$5-R$10 per day, depending on the level of service.

7. Using Credit and Debit Cards in Brazil

Using credit and debit cards in Brazil is generally convenient, but there are a few things to keep in mind.

7.1. Credit Cards

Most major credit cards are accepted for payment in Brazil. Visa and Mastercard are the most widely accepted, followed by American Express and Discover. However, smaller establishments, street vendors, and businesses in rural areas may only accept cash.

7.2. Debit Cards

Yes, you can use your debit card in Brazil at most merchants. Smaller street vendors or businesses in rural areas may only accept cash, so it is a good idea to carry some cash with you wherever you go. Also, notify your bank ahead of time so they don’t flag your debit card transactions as fraudulent.

7.3. Fees and Charges

When using your credit card, you will be charged a tax on your transaction known as IOF (Imposto sobre Operações Financeiras, or Tax on Financial Operations). This tax is typically around 6.38% and is charged on all foreign transactions.

7.4. Tips for Using Cards in Brazil

Notify Your Bank: Inform your bank or credit card company of your travel plans to avoid having your card blocked due to suspected fraud.
Check for Foreign Transaction Fees: Be aware of any foreign transaction fees your bank may charge.
Use ATMs Wisely: Withdraw cash from reputable bank ATMs to avoid high fees and potential security issues. Major Brazilian banks like Banco do Brasil, Bradesco, Itaú, and Santander often have ATMs that accept international cards. These ATMs are a good place to exchange foreign currency because they are easily accessible and generally don’t have high fees. The withdrawal limit from ATMs is usually R$1,000, but it may be lower depending on the ATM. It’s advisable to withdraw cash in Brazilian currency to avoid additional fees that might come with taking out foreign currency.

Alt Text: A hand holding a credit card near a payment terminal in a retail setting.

8. Finding Western Union Locations in Brazil

You can easily find a currency exchange near you in major Brazilian cities and tourist destinations. Authorized Western Union agents, for example, offer USD to BRL exchanges in person. Or you can always use the Western Union® mobile app or website to complete your exchange digitally.

8.1. Benefits of Using Western Union

Convenience: Multiple locations and online services make it easy to exchange money.
Reliability: A trusted name in currency exchange with secure transactions.
Competitive Rates: Often offers competitive exchange rates and transparent fees.

9. Staying Safe with Your Money in Brazil

When traveling in Brazil, it’s important to take precautions to protect your money and personal safety. Here are some tips to help you stay secure:

Use ATMs Wisely: Withdraw cash from ATMs inside banks during business hours to avoid potential scams or theft.
Be Discreet with Cash: Avoid displaying large amounts of cash in public. Keep your money in a secure place, such as a money belt or hidden pocket.
Use Credit Cards When Possible: Credit cards offer more protection against fraud than cash. Use them for larger purchases when accepted.
Be Aware of Your Surroundings: Pay attention to your surroundings and avoid walking alone in poorly lit or unsafe areas, especially at night.
Use Reputable Exchange Services: Only use authorized banks and exchange services to avoid counterfeit money or scams.
Keep Copies of Important Documents: Keep copies of your passport, credit cards, and other important documents in a separate location from the originals.
Inform Your Bank: Notify your bank of your travel dates to avoid having your cards blocked due to suspicious activity.

By following these tips, you can enjoy your time in Brazil with peace of mind, knowing you’ve taken steps to protect your money and personal safety.

10. Real-World Examples of Managing Money in Brazil

To illustrate how to effectively manage money in Brazil, let’s consider a few real-world scenarios:

10.1. Tourist Visiting Rio de Janeiro

Scenario: A tourist arrives in Rio de Janeiro with US dollars and needs to exchange money for local expenses.
Solution: The tourist should avoid exchanging money at the airport due to unfavorable rates. Instead, they should find a reputable casa de câmbio (currency exchange service) in a well-known area like Copacabana or Ipanema. They should compare rates at a few different locations before making a transaction. When using ATMs, they should opt for those inside bank branches during business hours.

10.2. Business Traveler in São Paulo

Scenario: A business traveler is in São Paulo for a conference and needs to pay for meals, transportation, and other expenses.
Solution: The traveler should use a credit card for larger expenses, such as hotel bills and conference fees, to earn rewards and avoid carrying large amounts of cash. They should notify their bank of their travel dates to prevent any issues with their card. For smaller expenses, they can withdraw Brazilian Reais from ATMs, opting to be charged in the local currency to avoid dynamic currency conversion fees.

10.3. Expatriate Living in Brazil

Scenario: An expatriate living in Brazil needs to manage their finances, including paying bills, receiving income, and sending money abroad.
Solution: The expatriate should open a local bank account to facilitate transactions and manage their finances more efficiently. They should use online banking services to pay bills and transfer money. When sending money abroad, they should compare the rates and fees of different services, such as Western Union, to find the most cost-effective option.

By understanding these scenarios and implementing the recommended solutions, you can navigate your financial activities in Brazil with confidence and ease.

FAQs About Using Money in Brazil

1. Can I Use My Credit Card in Brazil?

Most major credit cards are accepted for payment in Brazil. When using your credit card, you will be charged a tax on your transaction known as IOF (Imposto sobre Operações Financeiras, or Tax on Financial Operations).

2. Can I Use My Debit Card in Brazil?

3. What Is the Exchange Rate for Brazilian Reais to US Dollars?

The Brazilian real is a floating rate currency, so its value changes daily. You can get today’s USD to BRL exchange rate or send money to Brazil instantly with Western Union.

4. Can I Exchange Money Through Western Union in Brazil?

Yes, you can visit one of the many Western Union agent locations across Brazil to exchange money or utilize the Western Union® mobile app while traveling.

5. What Should I Do If My Card Is Declined in Brazil?

If your card is declined, first ensure you have notified your bank of your travel plans. Contact your bank to resolve any issues. Alternatively, use cash or try another card.

6. Is It Safe to Use ATMs in Brazil?

Use ATMs inside bank branches during business hours to minimize risks. Be aware of your surroundings and avoid ATMs in poorly lit or isolated areas.

7. Can I Negotiate Prices in Brazil?

Negotiating prices is not common in formal retail settings, but it may be possible in markets or with street vendors.

8. What Is the Best Way to Track Exchange Rates?

Use online currency converters or financial apps to track the USD to BRL exchange rate and stay informed of fluctuations.

9. Are There Any Scams I Should Be Aware Of?

Be cautious of unofficial money changers offering rates that seem too good to be true. Always use authorized exchange services to avoid scams.

10. What Happens to My Money If I Leave Brazil with Brazilian Reais?

You can exchange your remaining Brazilian Reais back to your home currency at the airport or at a currency exchange service. Alternatively, you can save them for a future trip.

Conclusion: Mastering Money Matters in Brazil

Navigating the financial landscape of Brazil involves understanding the Brazilian Real, knowing where to exchange currency, and being aware of local customs and safety tips. By following the guidelines and insights provided in this guide, you can ensure a smooth and financially secure experience in Brazil. Whether you’re a tourist, business traveler, or expatriate, managing your money wisely will enhance your overall experience in this vibrant and dynamic country. For more detailed advice, tools, and resources to help you manage your finances effectively, visit money-central.com today. Take control of your financial future and explore the opportunities that await you with informed financial decisions. Address: 44 West Fourth Street, New York, NY 10012, United States. Phone: +1 (212) 998-0000. Website: money-central.com.

Alt Text: A person carefully organizing stacks of money and coins on a wooden table, emphasizing financial planning.