View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
April 22, 1994

TELEBRAS TO ADOPT BRAZIL’s ANTI-INFLATION REAL VALUE UNIT “CURRENCY”

By CBR Staff Writer

Brazil is famous for coffee, Formula One racing drivers, the Bossa Nova, the Amazon rain forest, Mardi Gras, in all of which it can take pride – and inflation, which is a cause of shame, and more importantly, pain. Inflation is currently running at 43% a month, and several drastic measures to curb it have been tried and have failed. Undaunted, the government is trying again, this time by establishing a Real Value Unit, a wage and price index tied to the American dollar, intended to become the basis of a new currency. Most retailers have said they would convert to the new Unit only after public rates, such as those set by utilities, have made the switch, and the monopoly state phone company Telebras is leading the way. It announced that it will convert its rates by early next month to the new Unit, abandoning Brazil’s national currency, the cruzeiro real. It is looking at setting initial Real Value Unit rates at the average of the last four months under the discredited cruzeiro. The Real Value Unit is linked to the performance of the cruzeiro real against the dollar and it is intended that all salaries should be adjusted to it monthly; all new contracts are also to be written in it, and will then not be adjusted for a year.

Topics in this article :
Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU