Brazil Tourism: Money

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The official unit of currency in Brazil is the Real (pronounced rey-al; the plural is Reais, pronounced ray-eyes), which the Brazilian government introduced in 1994 in an attempt to control inflation. International money speculations around the 2002 presidential elections sent the Real into a tailspin, arriving at a record low of nearly R$4 to the U.S. dollar. When it became clear the new socialist president Lula da Silva was actually planning to follow a quite conservative monetary policy, the Real settled back around R$3 to the U.S. dollar. Prices stabilized, even going down for the first time in years. For travelers this means that Brazil is still very affordable. We give the prices in Reais (R$) and U.S. dollars (US$), accurate as of press time and calculated at the rate of R$1 = US33¢. (For reference purposes, other currency equivalents are UK£1 = R$4.68; C$1 = R$2.15; A$1 = R$1.92; NZ$1 = R$1.72.) Because of currency fluctuations, it's not a good idea to exchange all of your money at once. Keep your money in inflation-proof U.S. dollars, exchanging them as needed for Reais, or even better keep your dollars in your bank account and use ATMs to withdraw cash as needed. Tip: When exchanging money, be it cash or traveler's checks, always keep the receipt. You will need it in case you want to change back any unused Reais at the end of your trip. See www.xe.net/currency online for an easy currency converter.

Hoard Your Small Bills--There's a chronic lack of small bills in Brazil, particularly in the Northeast. Try paying for a R$4 item with a R$10 bill and you may have to wait half an hour while the vendor moans about the horror of making change, then runs around begging his friends and neighbors and other shopkeepers to please help him break a R$10. Or he may simply tell you to come back when you've got smaller bills. Buses, street vendors, and taxi drivers also usually carry little or no change, so hoard those R$1s and R$5s!

The U.S. Dollar -- Given the instability of inflation, quoted Real prices may be a bit off, but the dollar prices should be accurate; most Brazilian businesses simply adjust their prices to the U.S. dollar. Many tourism companies will quote prices directly in dollars. Sometimes websites or brochures list their prices in U.S. dollars only. If in doubt, ask. And though it's a bad idea to carry large wads of cash, it can be helpful to bring a small amount of U.S. cash ($10s or $20s only, no $100s) as an emergency supply in case that ATM is broken or your credit card isn't working. Even in the smallest towns people will know the exchange rate, and someone will be happy to take the U.S. dollars off your hands.

Traveler's Checks -- Traveler's checks don't work well in Brazil. Most shops won't accept them, hotels give a miserable exchange rate, and many banks have a strange policy that they will not cash your traveler's checks unless you have an account at that branch of that bank (in which case you're unlikely to be traveling). Others, such as Bank Boston, will only cash a minimum of US$500. The Banco do Brasil is the only bank that will cash them with a minimum of hassle (expect to spend at least 20-30 min.) but charges a flat rate of US$20 for the pleasure. Only American Express will cash checks for free (if they are American Express checks), but they only have a few offices in major centers like São Paulo, Rio de Janeiro, and Salvador.

ATM Networks -- The best way to get cash at a reasonable exchange rate is by withdrawing money from an ATM. Brazil's financial infrastructure is very sophisticated, and ATMs were common here even before they were used in Western Europe. You will find them everywhere in Brazil, even in the smallest towns. The only trick is finding one that works with your card. ATMs are linked to a network that most likely includes your bank at home. Cirrus (tel. 800/424-7787; www.mastercard.com) and PLUS (tel. 800/843-7587; www.visa.com) are the two most popular networks in the U.S.; call or check online for ATM locations at your destination. Be sure you know your PIN before you leave home, and be sure to find out your daily withdrawal limit before you depart. The vast majority of travelers find they are able to use the Banco do Brasil ATMs bearing a PLUS/Visa and Cirrus/MasterCard logo. Almost all Brazilian airports have Banco do Brasil ATMs. However, it's not a bad idea to bring two different cards to increase your access options with other banks. (Small towns normally only have one ATM. It will be PLUS/Visa or Cirrus/MasterCard, but not always both). Bradesco, HSBC, Banco 24 horas, and Citibank ATMs are compatible with Cirrus/MasterCard. If in doubt, check with your bank to find out which Brazilian bank networks are compatible with your card. Finally, make sure that during New Year's and Carnaval you get enough cash ahead of time, as machines often run out of money by the end of the holidays.

Tip: Before you leave home write down all your card numbers, expiration dates, and contact phone numbers. Leave a copy with someone you can easily reach, and e-mail a copy to yourself and save it in an account that can be accessed anywhere, like Hotmail or Yahoo!, so you have the information at your fingertips in case of loss or theft.

Credit Cards -- The best exchange rates can be obtained through credit cards, which are accepted at most Brazilian shops and hotels and restaurants. Just keep in mind that you are sometimes able to negotiate a better discount on a room or in a store if you pay cash. The most commonly accepted cards are Visa and MasterCard. American Express and Diners Club are also often accepted. It's a good idea to have at least two cards as some stores and restaurants may only accept one card (usually Visa). Remember that if you use your credit card to obtain a cash advance, interest begins to accrue from the moment the withdrawal is made.

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