Note with the highest individual value in Brazil circulates less than a R$ 1 note

After two and a half years of launch, the R$ 200 note circulates much less than the already disused R$ 1 note.

Currently, only 28% of the banknotes produced so far are circulating in Brazil. With 450 million notes produced, the number of notes in circulation currently stands at 124.8 million, which is well under half the amount produced. However, the Central Bank believes that the pace is within expectations.

By way of comparison, the R$ 1 banknotes (which are no longer produced since 2005 but are still in circulation) have a reasonably more expressive number: in all, about 148.65 million green banknotes circulate throughout the vast Brazilian territory. Still according to the news, around R$ 25 billion in R$ 200 bills are equivalent to almost 8% of all cash currently circulating in the country, which amounts to around R$ 317.34 billion.

Compared to other banknotes, the BRL 200 note occupies the 8th position among the most circulated notes, as is clear below:

^{Ranking of the most circulated banknotes in Brazil. (Photo: Reproduction/Central Bank and G1)}

Having been launched during the pandemic caused by COVID-19 in 2020, the Central Bank justified the creation of the new nova using arguments such as: an increase in withdrawals for cash reserves, the lack of return of Emergency Aid and the fact that Brazilians are saving more money at home due to the serious crisis caused by the pandemic season.

After the pandemic period, what is known is that new banknotes were not put into circulation by the Central Bank and are still in storage. Even with apparently low usage, the institution stated that “The pace of use of the 200 reais banknote has evolved in line with expectations, and should continue to be issued over the next few years.” Even though the circulation of the highest denomination banknote in Brazil is still not the highest, the R$200 banknote is the target of counterfeits and until April of this year 13,609 were produced illegally.

Featured Photo: the banknote that bears the maned wolf as a symbol has had a limited circulation rate. (Photo: Central Bank)