What does the launch of the 200 reais note mean for the economy?

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In July 2020, the Central Bank (BC) announced, after 18 years without new banknotes, the launch of the 200 reais note, something that generated a lot of speculation about the impacts of the new currency on the country's economy.

The fact is that all economic decisions impact the market in some way sweden phone number list also have a reason for happening. The important thing is to understand what is behind these decisions and, most importantly, how they impact companies and citizens.

In this article, we will explain the main questions regarding the 200 reais note. To understand the impacts of the new note, the projections and the economic changes resulting from its launch, continue reading and find out more!

Why was the 200 reais note launched?
The pandemic has had a major impact on the Brazilian economy, including an economic crisis and an increase in the demand for cash. This is because many people, fearful that banks might go bankrupt or afraid that they would not be able to go to the cashier due to the restrictive measures, began to hold more money.

The act of keeping money at home instead of using the bank is called hoarding and has a direct impact on the country's economy. Between March and July 2020, the amount of paper money held by the public increased by around R$61 billion, according to the Central Bank.