Printer going BRRRR In Brazil — Signs of Inflation
The Brazilian Central Bank recently announced that it has created a NEW $200 Real Bill, which will go into circulation by the end of August 2020. Up to this month and since the introduction of the Real Currency on June 1st, 1994, the highest valued currency bill in Brazil was $100 Reais, and the lowest valued coin was 1 cent of Real. However, given the inflation accumulated over the years, Brazil no longer produces the 1 cent coin as it is too costly to produce. And, the buying power of Real has diminished considerably. To be exact, taking inflation in consideration, $100 Reais 26 years ago equals to $620 Reais today according to SuperApril.com
Given the Pandemic, The BC of Brazil is taking measures to make sure that there is enough cash in circulation to attend to the population needs. Unlike many developing countries that have easily digitized their relief efforts for the 2020 Pandemic; Brazil is still a country with difficult digital access, with many places lacking internet accessibility. Also, the majority of the population in Brazil is currently un-banked hence the strong need for Physical Cash. “BRRRRAZIL”!
This video is all about my take on the new $200 Real bill, and my historical perspective growing up in Brazil and truly experiencing Inflation daily. Truly surreal to think that in my lifetime Brazil had 6 different currencies implemented and issued.
So How about the US? How long do you think the penny will last? Are you feeling the impacts of inflation? Let me know your thoughts on the comments below!
Originally published at https://www.mammycrypto.com on August 17, 2020.
