Unidade real de valor

The Daily Unidade Real de Valor, or URV (Portuguese, Real Value Unit), was a non-monetary reference currency (i.e., non-fiat) created in March 1994, as part of the Plano Real in Brazil. It was the most theoretically sophisticated piece of the Plano Real and was based on a previous academic work by Pérsio Arida and André Lara Resende, the "Larida Plan", published in 1984.

Its main purpose was to establish a parallel currency to the cruzeiro real, free from the effects of inertial inflation on the latter, which exceeded 1,200% per year prior to the implementation of the new currency, the real.

It was conceived as a temporary instrument to break up the "psychological inertia" that had ingrained in the Brazilian mindset and which caused prices to keep rising as a consequence of subjective estimation of inflation or preemptive adjustment without cost assessment. These phenomena are among the chief characteristics of hyperinflation, resulting from the erosion of confidence on the legal tender. The idea was to let the old currency (the cruzeiro real) fully absorb the effects of hyperinflation while having a new currency to be stable (in nominal terms) by adjusting its exchange rate against the old one.

URVs were quoted in cruzeiros reais and its intrinsic value was pegged to three price indices and had a fixed parity of 1-to-1 to the daily U.S. dollar exchange rate. The exchange rate of URVs to cruzeiros reais was recalculated and published daily by the government.

Prices were quoted both in URVs and cruzeiros reais, but payments had to be made exclusively in cruzeiros reais, since the URV would not become legal tender until July 1, 1994. For instance, banks were required to report balances on accounts in both currencies and contracts had to be rewritten to express prices in URVs.

The URV was extinguished on July 1, 1994, when it was converted to a new currency, the real, at parity (i.e., 1 real = 1 URV = CR$2,750), effectively breaking the hyperinflationary cycle, bringing stability to the Brazilian currency.

The implementation of the new currency was one of the greatest currency changes in known history, with almost the entirety of the country's legal tender replaced in about 45 days.

Daily value of the URV per week (cruzeiros reais)
1st week Mon Tue Wed Thu Fri 2nd week Mon Tue Wed Thu Fri
Date
Value
28 Feb
1 Mar
647.50
2 Mar
657.50
3 Mar
667.65
4 Mar
677.98
Date
Value
7 Mar
688.47
8 Mar
699.13
9 Mar
709.96
10 Mar
720.97
11 Mar
732.18
3rd week Mon Tue Wed Thu Fri 4th week Mon Tue Wed Thu Fri
Date
Value
14 Mar
743.76
15 Mar
755.52
16 Mar
767.47
17 Mar
779.61
18 Mar
792.15
Date
Value
21 Mar
805.53
22 Mar
819.80
23 Mar
834.32
24 Mar
849.10
25 Mar
864.14
5th week Mon Tue Wed Thu Fri 6th week Mon Tue Wed Thu Fri
Date
Value
28 Mar
879.45
29 Mar
895.03
30 Mar
913.50
31 Mar
931.05
1 Apr
931.05
Date
Value
4 Apr
931.05
5 Apr
948.93
6 Apr
967.16
7 Apr
985.74
8 Apr
1,004.68
7th week Mon Tue Wed Thu Fri 8th week Mon Tue Wed Thu Fri
Date
Value
11 Apr
1,023.98
12 Apr
1,043.65
13 Apr
1,063.70
14 Apr
1,084.13
15 Apr
1,104.96
Date
Value
18 Apr
1,126.18
19 Apr
1,147.81
20 Apr
1,169.80
21 Apr
1,191.93
22 Apr
1,191.93
9th week Mon Tue Wed Thu Fri 10th week Mon Tue Wed Thu Fri
Date
Value
25 Apr
1,313.97
26 Apr
1,235.99
27 Apr
1,258.12
28 Apr
1,280.19
29 Apr
1,302.65
Date
Value
2 May
1,323.92
3 May
1,345.54
4 May
1,367.56
5 May
1,389.94
6 May
1,412.74
11th week Mon Tue Wed Thu Fri 12th week Mon Tue Wed Thu Fri
Date
Value
9 May
1,435.92
10 May
1,459.76
11 May
1,484.27
12 May
1,509.20
13 May
1,534.66
Date
Value
16 May
1,560.55
17 May
1,586.87
18 May
1,613.64
19 May
1,640.86
20 May
1,668.54
13th week Mon Tue Wed Thu Fri 14th week Mon Tue Wed Thu Fri
Date
Value
23 May
1,696.69
24 May
1,725.31
25 May
1,754.41
26 May
1,784.00
27 May
1,814.09
Date
Value
30 May
1,844.69
31 May
1,875.82
1 Jun
1,908.68
2 Jun
1,942.11
3 Jun
1,942.11
15th week Mon Tue Wed Thu Fri 16th week Mon Tue Wed Thu Fri
Date
Value
6 Jun
1,976.13
7 Jun
2,010.74
8 Jun
2,046.38
9 Jun
2,082.65
10 Jun
2,119.80
Date
Value
13 Jun
2,157.78
14 Jun
2,196.55
15 Jun
2,236.02
16 Jun
2,276.91
17 Jun
2,318.55
17th week Mon Tue Wed Thu Fri 18th week Mon Tue Wed Thu Fri
Date
Value
20 Jun
2,361.49
21 Jun
2,406.05
22 Jun
2,452.17
23 Jun
2,499.18
24 Jun
2,547.09
Date
Value
27 Jun
2,596.58
28 Jun
2,647.03
29 Jun
2,698.46
30 Jun
2,750.00
1 Jul
R$1.00
Monday values were retroactive to Saturdays and Sundays. Subsequently, a formula was established for retroactive accounting for the previous months and years.
Source: Banco Central[1]

See also

References

  1. Banco Central do Brasil. Disponível em BCB
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