The Relatively stable history of the Real 1994-2003

The Real was instituted as a part of a broader economic plan which is largely credited for initiating the process for much of the relative strength in the economy which has extended until present. It was pegged to the Dollar at around 1:1 until January of 1999 when it was floated freely on the market. While there have been some significant swings in the value of The Real it has been the most stable currency for Brazil in recent history. Maintaining stability in the Real is a key component to the continued growth of Brazil (or fueling of the Bubble...).

My guess is if China ever floated the Renminbi (a huge if) there would the opposite immediate effect, ie. The Yuan would quickly jump in value.

Note: Graph of the Real Courtesy of: Camila Fontana of Bloomberg News.