Thereal (Portuguese pronunciation:[ʁiˈal], meaning "royal", plural:réis or [archaic]reais) was the unit ofcurrency ofPortugal and thePortuguese Empire from around 1430 until 1911. It replaced thedinheiro at the rate of 1 real =3+1⁄2 libras = 70 soldos = 840 dinheiros and was itself replaced by theescudo (as a result of theRepublican revolution of 1910) at a rate of 1 escudo = 1000 réis. Theescudo was further replaced by theeuro at a rate of 1 euro = 200.482escudos in 2002.
_(14578526689).jpg)
The firstreal was introduced byKing Fernando I around 1380.[1] It was a silver coin and had a value of 120dinheiros (10soldos or1⁄2libra). In the reign ofKing João I (1385–1433), thereal branco of3+1⁄2libras (initiallyreal cruzado[2] ) and thereal preto of 7soldos (1⁄10 of areal branco) were issued. By the beginning of the reign ofKing Duarte I in 1433, thereal branco (equivalent to 840dinheiros) had become the unit of account in Portugal. From the reign ofKing Manuel I (1495–1521), the name was simplified toreal, coinciding with the switch to mintingreal coins from copper.[3]
Due to the historically low value of thereal, large sums were usually expressed inmilréis (ormil-réis) of 1,000réis, a term that has been in use since at least the 1760s.[4] In figures, amil-réis was written as 1$000, with thecifrão or $ sign functioning as a decimal point for monetary amounts, so that 60,500réis would be written as 60$500 or 60.5milréis.[3]
Since theBrazilian Gold Rush of the 18th century, Portuguese gold coins gained currency worldwide, and especially with its ally theUnited Kingdom. Its most familiar gold coins were issued in multiples of goldescudos, which were valued at 1$600 and which contained 3.286 g fine gold.[5]
TheNapoleonic Wars of the early 19th century spawned the issue of the papermilréis which eventually depreciated versus the silvercruzado and the goldescudo. The monetary reform of 1837 recognized the lower value of themilréis by increasing the value of the goldescudo from 1$600 to 2$000. It also changed the main unit of account from thereal to themilréis (1$000)[6] with decimal subdivisions used in its coins.
TheBanco de Portugal issued its first banknotes in 1847. In 1854, Portugal adopted agold standard with themilréis equal to 1.62585 g fine gold. This standard was maintained until 1891.[3]
In 1911, theescudo replaced thereal at the rate of 1escudo = 1,000réis as the Portuguese currency unit (not to be confused with the goldescudo worth 1$600). One millionréis (or one thousandmil-réis, written 1.000$000) was known as aconto de réis. This term survived the introduction of theescudo to mean 1,000escudos and is now used to mean fiveeuros, almost exactly the converted value of 1,000escudos or one millionréis (1conto is approximately €4.98798).[3]
Theold Brazilian real was initially valued at par with the Portuguese real, but from 1740 it was valued lower by a factor of10⁄11, increasing the value of the goldescudo from 1$600 to 1$760. After the Napoleonic Wars the Brazilian unit was devalued further, with theescudo rising to 2$500 in 1834 and 4$000 in 1846.
Coins and banknotes were also issued denominated inréis for use in the different parts of thePortuguese Empire. See:Angolanreal,Azoreanreal,Brazilianreal,Cape Verdereal,Mozambicanreal,Portuguese Guineareal andSão Tomé and Príncipereal. Brazil has revived thereal as the denomination ofits present currency.[3]
Portuguese influence in the Persian Gulf, especially inPortuguese 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 thetoman) of Iran.[7]
Before the middle of the 19th century, many different denominations were minted, often with values in terms of thereal which increased over time. For example, thecruzado was introduced at a value of 324real branco in the reign ofKing João II. It was fixed at a value of 400réis duringKing João III's reign and this remained the value of the silvercruzado until the reign ofKing Pedro II, when it was revalued to 480réis. Meanwhile, the goldcruzado rose in value to 750réis in the reign ofKing João IV, then to 875réis in the reign ofKing Afonso VI before its demise.[3]
The last 1real coins (excluding colonial issues) were minted in the 1580s. After this time, the smallest coins were worth1+1⁄2réis. These were minted until around 1750, after which the threereal coin became the smallest circulating denomination.[3]
Gold coins issued during theBrazilian Gold Rush of the 18th century belonged to either themoidore series of 1688–1732 or thejoannese series of 1722–1835. A description of the coins of themoidore series:[5]
While silver and copper denominations were left unchanged by thejoannese series of 1722–1835, gold coins were issued instead in binary fractions of the goldonça (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 thepeça or1⁄2onça worth 6$400. Other denominations include the half-peça of 3$200, theescudo of 1$600, and the half-escudo of 0$800.
As theUnited Kingdom was on thegold standard starting 1717, Portuguese gold coins widely circulated there at the rate of 27shillings (£1.35) for themoidore (4$800) and 9 shillings (£0.45) for theescudo (1$600). Goldmoidores andjoes of theBrazilian Gold Rush were often mentioned inEnglish literary references of the 18th and 19th centuries.
Following the depreciation of the papermilréis during and after theNapoleonic Wars of the early 19th century, the goldpeça 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 permilréis 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 3real coins were issued, with cupronickel 50 and 100 réis issued in 1900.[3]
During Portugal'sgold standard era from 1854 to 1891 theBritish gold sovereign or £1 coin was widely accepted in circulation with a value of 4$500.
Portugal's first paper money was introduced in 1797 by the government.[8] Denominations issued until 1807 included 1$200, 2$400, 5$000, 6$400, 10$000, 12$000 and 20$000réis. Some of these notes were revalidated for continued use during theWar of the Two Brothers (1828 to 1834).[9]
From the 1820s, several private banks issued paper money. The most extensive issues were by theBanco de Lisboa, whose notes were denominated in bothréis andmoedas, worth 4$800réis. This bank issued notes for 1$200 and 2$400réis, 1, 4, 10, 20, 50 and 100moedas. TheBanco Commercial de Braga,Banco Commercial do Porto,Banco de Guimaraes andBanco Industrial do Porto also issued notes, with bearer cheques issued by a number of other banks between 1833 and 1887.[9]
In 1847, theBanco de Portugal introduced notes for 10$000 and 20$000réis.[10] 5$000réis notes were issued from 1883, followed by 50$000réis in 1886. In 1891, theCasa de Moeda introduced notes for 50 and 100réis,[11] and theBanco de Portugal introduced notes for 200, 500, 1$000 and 2$500réis, followed by 100$000real notes in 1894.
| Preceded by | Portuguese currency 1433–1911 | Succeeded by |
.jpg)
