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 In the 80's Brazil
was plagued a galloping inflation, as in 50% a month. The currency changed
names frequently, and trying to understand it was a bad joke. Brazilians
finally started to enjoy some economic stability in the 90's, with the
creation of the real (hey-ALL), plural reais (hey-ICE).
There are R$100, R$50, R$10, R$5 and R$1 bills, featuring assorted images
of Brazilian fauna. The real is divided into 100 centavos (sayin-TA-vush).
Coins are handy for a bus ride, gum, and the inevitable cafezinho. They
come in all colors, from silver, gold, copper, silver with a gold band...
This is a gimmick the Central Bank used, so people would stop throwing
coins away - a habit acquired during the inflation years.
The real was originally quoted US$1, and there was a fluctuation band. In
January 99 the government stopped interfering in the exchange rate, and
the real underwent a major devaluation. The US$ was quoted as high as
R$2.10 for a few days. Now the exchange rate is revolving around R$1.70 to
R$1.90, depending on whether you are buying or selling. Inflation is kept
under control at about 1% a month or less.
This devaluation couldn't be better news for travelers visiting Brazil. As
prices did not go up with the US$, most everything is about 30% cheaper
than back in 98 or 97. Eating out and shopping are more affordable than
ever. Enjoy top restaurants in all price ranges, and do not miss the
boutiques in Ipanema, Copacabana, and the malls. Brazilian goods are of
excellent quality, and you will find everything from bikinis to gems,
shoes, leathers, etc.
Now that you know you reais, tip smartly! At restaurants in addition to
the couvert (i.e. bread basket + spreads) a 10% tip is usually included -
unless it's a self-serve joint, obviously. Give a little more only if
service was especially friendly. Taxi drivers do not expect big tips, and
may even round down the total to locals (?). Round up, or give an extra
R$1 if you are feeling especially generous. Bellboys and chamber maids
expect to get at least R$1. Give less and you will be considered a
mão-de-vaca (mown-djee-VA-ca) - Portuguese for cow's hand, you know, the
kind that never opens... Barbers, hair stylists, masseurs, manicurists,
pedicurists and the like expect at least a 10% tip (again never less than
R$1). Tips to bartenders at discos are not mandatory (but appreciated).
Going on to other practical aspects, let's consider how to bring your
spending money:
Traveler's Checks
Yes, it's the safest way, couldn't agree with you more, but... Well, the
first drawback is that you will get a worse rate than you would for cash.
Many travel agencies with currency exchange desks simply do not take them.
To get rid of traveler's checks you may have to go to a Citibank or AmEx
American Express branch. Other banks charge a flat rate of US$20 to
exchange your checks. You will probably end up trading in more than you
had planned, only to avoid paying the fee again. You will be stuck with a
stash of Brazilian cash, and there goes your safety factor down the drain.
It may be a good idea to bring some checks for an emergency, though.
Cash
Cash is always convenient to bring as spending money. If you are worried
about safety, wear one of those money belts inside your pants until you
get to your hotel. Any decent property will have a safety box in the
bedroom closet, where you can safely store your valuables. Bring at least
a few hundred bucks to pay for expenses like transportation, snacks, and
entertainment.
Credit Cards
Plastic is very popular in Rio, and it will avoid the hassle of carrying
too much cash around. Visa, AmEx, MasterCard and Diner's are the most
widely accepted, probably in this order. Cards are great to pay your hotel
bill, most restaurants, that shopping spree that happened on a cloudy
day... If your bank or credit card uses the Cirrus system, you may also
withdraw cash at many ATM's.
Credits:
Ipanema.com |
