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Brazilians Are Worried by Their Newest and Biggest Bank Note

Brazilians Are Worried By Their Newest and Biggest Bank Note

Brazil’s newest and largest bank note has quickly created a stir online amid concern it could spur corruption and be difficult for ordinary citizens to use.

The central bank’s post on Facebook about the 200 reais note -- worth $37 at current exchange rates -- gained 55,000 shares within 12 hours.

Brazilians Are Worried by Their Newest and Biggest Bank Note

Some people who subsequently commented online said the larger notes would make it easier for lawbreakers to hide bigger amounts of money. Others added that ordinary people would find it hard to break them for change.

The central bank responded by saying the printing of the new note is a precautionary move to ensure demand for cash amid the pandemic is met, and sought to allay fears the new denomination could spur inflation.

Brazil has suffered one of the world’s worst pandemic tolls. The economy posted its largest slump on record in the second quarter, and the recovery is likely to be irregular as the crucial services sector remains weak despite emergency government spending.

©2020 Bloomberg L.P.