Portuguese real

The ''real'' (, meaning "royal", plural: ''réis'' or rchaic''reais'') was the unit of currency of Portugal and the Portuguese Empire from around 1430 until 1911. It replaced the '' dinheiro'' at the rate of 1 real = 840 dinheiros and was itself replaced by the ''escudo'' (as a result of the Republican revolution of 1910) at a rate of 1 escudo = 1000 réis. The ''escudo'' was further replaced by the euro at a rate of 1 euro = 200.482 ''escudos'' in 2002.

History

The first ''real'' was introduced by King Fernando I around 1380.Numária nacional
Tesouros Numismáticos Portugueses It was a silver coin and had a value of 120 '' dinheiros'' (10 ''soldos'' or ''libra''). In the reign of King João I (1385–1433), the ''real branco'' of ''libras'' (initially real cruzado ) and the ''real preto'' of 7 ''soldos'' ( of a ''real branco'') were issued. By the beginning of the reign of King Duarte I in 1433, the ''real branco'' (equivalent to 840 ''dinheiros'') had become the unit of account in Portugal. From the reign of King Manuel I (1495–1521), the name was simplified to ''real'', coinciding with the switch to minting ''real'' coins from copper.

Due to the historically low value of the ''real'', large sums were usually expressed in '' milréis'' (or ''mil-réis'') of 1,000 ''réis'', a term that has been in use since at least the 1760s. In figures, a ''mil-réis'' was written as 1$000, with the '' cifrão'' or $ sign functioning as a decimal point for monetary amounts, so that 60,500 ''réis'' would be written as 60$500 or 60.5 ''milréis''.

Since the Brazilian Gold Rush of the 18th century, Portuguese gold coins gained currency worldwide, and especially with its ally the United Kingdom. Its most familiar gold coins were issued in multiples of gold ''escudos'', which were valued at 1$600 and which contained 3.286 g fine gold.

The Napoleonic Wars of the early 19th century spawned the issue of the paper ''milréis'' which eventually depreciated versus the silver ''cruzado'' and the gold ''escudo''. The monetary reform of 1837 recognized the lower value of the ''milréis'' by increasing the value of the gold ''escudo'' from 1$600 to 2$000. It also changed the main unit of account from the ''real'' to the ''milréis'' (1$000) with decimal subdivisions used in its coins.

The '' Banco de Portugal'' issued its first banknotes in 1847. In 1854, Portugal adopted a gold standard with the '' milréis'' equal to 1.62585 g fine gold. This standard was maintained until 1891.

In 1911, the ''escudo'' replaced the ''real'' at the rate of 1 ''escudo'' = 1,000 ''réis'' as the Portuguese currency unit (not to be confused with the gold ''escudo'' worth 1$600). One million ''réis'' (or one thousand ''mil-réis'', written 1.000$000) was known as a ''conto de réis''. This term survived the introduction of the ''escudo'' to mean 1,000 ''escudos'' and is now used to mean five euros, almost exactly the converted value of 1,000 ''escudos'' or one million ''réis'' (1 ''conto'' is approximately €4.98798).

The old Brazilian real was initially valued at par with the Portuguese real, but from 1740 it was valued lower by a factor of , increasing the value of the gold ''escudo'' from 1$600 to 1$760. After the Napoleonic Wars the Brazilian unit was devalued further, with the ''escudo'' rising to 2$500 in 1834 and 4$000 in 1846.

Coins and banknotes were also issued denominated in ''réis'' for use in the different parts of the Portuguese Empire. See: Angolan ''real'', Azorean ''real'', Brazilian ''real'', Cape Verde ''real'', Mozambican ''real'', Portuguese Guinea ''real'' and São Tomé and Príncipe ''real''. Brazil has revived the ''real'' as the denomination of its present currency.

Portuguese influence in the Persian Gulf, especially in Portuguese Oman extended the use of the term "real", though not the actual currency or value, to the Middle East and the slightly Arabicized form of the word "real", the "riyal" is the currency of The Kingdom of Saudi Arabia and the current (but soon to be former currency in favor of the toman) of Iran. Beck, Sanderson (2004). "East Africa, Portuguese, and Arabs". Middle East & Africa to 1875. http://www.san.beck.org/1-13-Africa1500-1800.html Retrieved 2022-07-28.

Coins

Before the middle of the 19th century, many different denominations were minted, often with values in terms of the ''real'' which increased over time. For example, the ''cruzado'' was introduced at a value of 324 ''real branco'' in the reign of King João II. It was fixed at a value of 400 ''réis'' during King João III's reign and this remained the value of the silver ''cruzado'' until the reign of King Pedro II, when it was revalued to 480 ''réis''. Meanwhile, the gold ''cruzado'' rose in value to 750 ''réis'' in the reign of King João IV, then to 875 ''réis'' in the reign of King Afonso VI before its demise.

The last 1 ''real'' coins (excluding colonial issues) were minted in the 1580s. After this time, the smallest coins were worth ''réis''. These were minted until around 1750, after which the three ''real'' coin became the smallest circulating denomination.

Gold coins issued during the Brazilian Gold Rush of the 18th century belonged to either the ''moidore'' series of 1688–1732 or the ''joannese'' series of 1722–1835. A description of the coins of the ''moidore'' series:

* The most familiar coin of this series is the ''moeda d'ouro'' (literally "gold coin", and commonly Anglicised as the '' moidore''), stamped 4,000 réis but actually valued 20% higher or 4,800 réis (4$800). This coin weighed ''onça'' (explained below) and contained 9.86 g fine gold.
* Valued proportionately are coins of 480 ''réis'' (the ''cruzado''), 1$200, 2$400, 12$000, and 24$000 (the ''dobrão''), though they are stamped with their old values of 400, 1$000, 2$000, 10$000 and 20$000 réis, respectively.
* Silver coins were issued in denominations of 480 réis (''cruzado'') and 240, 100 (''tostão''), and 50 réis, though stamped with their old values of 400, 200, 80 and 40 réis, respectively.
* Copper coins were issued in denominations of 3, 5, 10, 20 and 40 réis.

While silver and copper denominations were left unchanged by the ''joannese'' series of 1722–1835, gold coins were issued instead in binary fractions of the gold ''onça'' (or ounce), which contained 28.68 g of 22-karat or 91.7% fine gold, and which was valued at 12$800. The most familiar coin of this series is the ''peça'' or ''onça'' worth 6$400. Other denominations include the half-''peça'' of 3$200, the ''escudo'' of 1$600, and the half-''escudo'' of 0$800.

As the United Kingdom was on the gold standard starting 1717, Portuguese gold coins widely circulated there at the rate of 27 shillings (£1.35) for the ''moidore'' (4$800) and 9 shillings (£0.45) for the ''escudo'' (1$600). Gold '' moidores'' and ''joes'' of the Brazilian Gold Rush were often mentioned in English literary references of the 18th and 19th centuries.

Following the depreciation of the paper ''milréis'' during and after the Napoleonic Wars of the early 19th century, the gold ''peça'' of 13.145 g fine gold was raised in value from 6$400 to 7$500 in 1826, 8$000 in 1837, and 8$085 in 1854 (when the gold standard of 1.62585 g fine gold per ''milréis'' was implemented).

In 1837, a decimal system was adopted, with copper coins (bronze from 1882) of 3, 5, 10 and 20 réis, silver coins for 50, 100, 200, 500 and 1,000 réis and gold 1$000, 2$000, 2$500, 5$000 and 10$000. In 1875, the last 3 ''real'' coins were issued, with cupronickel 50 and 100 réis issued in 1900.

During Portugal's gold standard era from 1854 to 1891 the British gold sovereign or £1 coin was widely accepted in circulation with a value of 4$500.

Banknotes

Portugal's first paper money was introduced in 1797 by the government. Denominations issued until 1807 included 1$200, 2$400, 5$000, 6$400, 10$000, 12$000 and 20$000 ''réis''. Some of these notes were revalidated for continued use during the War of the Two Brothers (1828 to 1834).

From the 1820s, several private banks issued paper money. The most extensive issues were by the ''Banco de Lisboa'', whose notes were denominated in both ''réis'' and ''moedas'', worth 4$800 ''réis''. This bank issued notes for 1$200 and 2$400 ''réis'', 1, 4, 10, 20, 50 and 100 ''moedas''. The ''Banco Commercial de Braga'', ''Banco Commercial do Porto'', ''Banco de Guimaraes'' and ''Banco Industrial do Porto'' also issued notes, with bearer cheques issued by a number of other banks between 1833 and 1887.

In 1847, the '' Banco de Portugal'' introduced notes for 10$000 and 20$000 ''réis''. 5$000 ''réis'' notes were issued from 1883, followed by 50$000 ''réis'' in 1886. In 1891, the ''Casa de Moeda'' introduced notes for 50 and 100 ''réis'', and the ''Banco de Portugal'' introduced notes for 200, 500, 1$000 and 2$500 ''réis'', followed by 100$000 ''real'' notes in 1894.

See also

*Economic history of Portugal

References

Bibliography

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External links

Portuguese Coins
Catalogue of Portuguese Coins.

Photos and descriptions of the coins of Portugal from the Kingdom to the euro.

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Currencies of Europe
Modern obsolete currencies
Economic history of Portugal
1430s establishments in Portugal
1911 disestablishments in Portugal
Currencies of Portugal