Real Currency Usage in Brazil & Beyond

The Real is the official currency of several countries, primarily in Latin America and Africa. As of my last update in January 2022, there are four countries where the currency named Real is used: Brazil, Mozambique, Cape Verde, and São Tomé and Príncipe.

1. Brazil: Brazil is the largest and most populous country in South America, and its currency is called the Brazilian Real. The Real was introduced in 1994 as part of Brazil’s economic stabilization plan, replacing the previous currency, the Cruzeiro Real. The symbol for the Brazilian Real is R$.

2. Mozambique: Mozambique is a country located in Southeast Africa, and it also uses a currency called the Metical, abbreviated as MZN. However, the Real (plural: Reais) is accepted alongside the Metical in certain border regions due to historical and economic ties with Brazil. This acceptance is primarily seen in areas near the Mozambique-Brazil border, where Brazilian businesses operate, and there are significant Brazilian expatriate communities.

3. Cape Verde: Cape Verde is an island nation located off the coast of West Africa. The official currency of Cape Verde is the Cape Verdean escudo (CVE). However, the Real is accepted in some tourist areas, particularly on the island of Sal, due to the presence of Brazilian tourists and investments.

4. São Tomé and Príncipe: São Tomé and Príncipe is a small island nation in the Gulf of Guinea, off the western equatorial coast of Central Africa. Its official currency is the São Tomé and Príncipe dobra (STN). Similar to Mozambique and Cape Verde, the Real is accepted in certain tourist areas due to the presence of Brazilian visitors and investments.

It’s essential to note that while the Real is accepted or used in these countries to some extent, it is not their official currency, except for Brazil. The acceptance of the Real in Mozambique, Cape Verde, and São Tomé and Príncipe is primarily due to historical, economic, and cultural ties with Brazil, rather than it being their designated legal tender.

Certainly! Let’s delve deeper into each country where the Real is used or accepted:

1. Brazil:

   • Brazil is the largest country in South America by both land area and population, with a rich cultural heritage influenced by indigenous peoples, Portuguese colonizers, African slaves, and immigrants from various parts of the world.
   • The Brazilian Real (BRL) is the official currency, introduced in 1994 during the Plano Real (Real Plan), an economic stabilization program aimed at combating hyperinflation.
   • The symbol for the Brazilian Real is R$, and its ISO code is BRL. One Real is subdivided into 100 centavos.
   • The Central Bank of Brazil (Banco Central do Brasil) is responsible for issuing and regulating the Real.
   • Brazil has a diverse economy, with sectors such as agriculture, manufacturing, services, and natural resources playing significant roles. It is also one of the world’s leading producers of commodities such as coffee, soybeans, and iron ore.
   • Major cities like São Paulo, Rio de Janeiro, and Brasília are key economic and cultural centers in Brazil.

2. Mozambique:

   • Mozambique is located in Southeast Africa and is known for its stunning coastline along the Indian Ocean, diverse wildlife, and rich cultural heritage.
   • The official currency of Mozambique is the Mozambican Metical (MZN), which is issued and regulated by the Bank of Mozambique (Banco de Moçambique).
   • Despite the Metical being the official currency, the Brazilian Real (BRL) is sometimes accepted in certain border regions due to historical ties, trade relations, and the presence of Brazilian businesses and expatriates.
   • Mozambique has a developing economy with sectors such as agriculture, mining, energy, and tourism contributing to its growth. The country is rich in natural resources such as coal, natural gas, and minerals.
   • Maputo, the capital city, is a bustling cultural and economic hub, while other cities like Beira and Nampula also play important roles in Mozambique’s economy.

3. Cape Verde:

   • Cape Verde is an archipelago consisting of ten volcanic islands in the central Atlantic Ocean, off the coast of West Africa. It is known for its stunning beaches, vibrant music, and cultural diversity.
   • The official currency of Cape Verde is the Cape Verdean escudo (CVE), which is issued and regulated by the Bank of Cape Verde (Banco de Cabo Verde).
   • While the Cape Verdean escudo is the legal tender, the Brazilian Real (BRL) is sometimes accepted in tourist areas, particularly on the island of Sal, due to the presence of Brazilian tourists, investments, and businesses.
   • Cape Verde’s economy relies heavily on tourism, remittances, and service industries. The country also faces challenges such as limited natural resources and vulnerability to climate change.
   • Praia, the capital city located on the island of Santiago, is the economic and administrative center of Cape Verde.

4. São Tomé and Príncipe:

   • São Tomé and Príncipe is a small island nation consisting of two main islands, São Tomé and Príncipe, in the Gulf of Guinea off the coast of Central Africa.
   • The official currency of São Tomé and Príncipe is the São Tomé and Príncipe dobra (STN), which is issued and regulated by the Central Bank of São Tomé and Príncipe.
   • Similar to Mozambique and Cape Verde, the Brazilian Real (BRL) is accepted in certain tourist areas of São Tomé and Príncipe due to the presence of Brazilian visitors, investments, and businesses.
   • São Tomé and Príncipe’s economy relies heavily on agriculture, particularly cocoa and coffee production, as well as fishing and ecotourism. The country faces challenges such as limited infrastructure and dependence on external aid.
   • São Tomé, the capital city located on the island of São Tomé, serves as the economic, cultural, and administrative center of the country.

In summary, while Brazil is the only country where the Real is the official currency, Mozambique, Cape Verde, and São Tomé and Príncipe have historical and economic ties with Brazil, leading to the acceptance of the Real in certain regions alongside their official currencies. These ties include trade relations, cultural exchanges, and the presence of Brazilian businesses, expatriates, and tourists.