, Columnist
30 Years Ago, the Real Saved Brazil’s Economy
The creation of a new currency ended a decade of punishing hyperinflation, although Brazil has since made new problems for itself.
Happy 30th.
Photographer: Andre Coelho/Bloomberg
This month marks the 30th anniversary of the Brazilian real, a significant achievement that illuminates both the promise and the limits of reform.
On one hand, the creation of the new currency was a success. I recall visiting Rio de Janeiro in the early 1990s and experiencing hyperinflation. I tried to hold most of my money in dollars; if I came into possession of some Brazilian currency, then called the Cruzeiro Real, I made sure to spend it right away. In 1990, the rate of inflation in Brazil was 2,948%.