R$ 200 bill makes 1 year with only 18% of production circulating in the country

The R$200 bill completes one year of its launch on September 2nd. It was created with the argument that there was a risk of lack of money for Brazilians, but only 18% of the banknotes produced are in circulation, and 82% are stranded.

The BC ordered 450 million units, equivalent to R$ 90 billion. However, only 79 million are available for use by Brazilians, totaling R$ 15.8 billion. The remaining 371 million banknotes are stored at BC. The government spent R$113.8 million to produce the notes.

When she announced the launch of the R$ 200 bill, BC’s Director of Administration, Carolina de Assis Barros, declared that the coronavirus pandemic required a greater number of banknotes in circulation in the country.

Without a R$ 200 bill, according to her, there would be a risk of a shortage of paper money. The payment of emergency aid led more people to withdraw money from banks, ATMs, lotteries and bank correspondents, which required action by the BC.

Usage pace is as expected, says BC

When contacted, the BC declared that the rate of use of the R$ 200 bill has been evolving as expected. The BC stated that the supply of banknotes is carried out in order to meet society’s demand for banknotes.

Asked by the UOL if it had plans to take the R$ 200 bill out of circulation, the BC limited itself to saying that any new denomination of banknote enters into circulation gradually and according to need.

The R$200 note is the seventh of the real banknote family, which also has R$2, R$5, R$10, R$20, R$50 and R$100 notes. 1 are no longer produced.

R$ 200 bill would facilitate crimes

The launch of the R$ 200 bill was marked by several criticisms that led political parties and entities linked to the fight against corruption to file suits in court to stop the circulation of the bill. In the first of them, filed by PSB, Podemos and Rede, Minister Carmen Lúcia, from the STF, filed the action.

The argument is that crime prefers higher-value banknotes because they facilitate illegal activities, such as corruption, tax evasion, money laundering, concealment and evasion of currency, since it makes it easier to “storage and transport illegally obtained resources and make it difficult the traceability of the respective transactions”.

In the decision, the judge informed that no relation of the subject with any violation of the Constitution was proven. The parties argued that the R$ 200 bill would facilitate crimes and that the Central Bank had not presented any study to justify the measure.

In the other action, associations of the TCU (Court of Accounts of the Union) and entities linked to the fight against corruption asked the STF to stop issuing new batches of R$ 200 bills or to give a deadline for the end of circulation. The process is still awaiting a decision from the magistrate.