Cruzado Novo

Cruzado Novo

The currency of Brazil between 1989 and 1990. It replaced the first cruzado at a rate of one new cruzado to 1,000 old cruzado. The cruzado novo was issued in an attempt to control Brazilian inflation; this attempt failed and the cruzado novo was replaced by the third cruzeiro in 1990.
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It doesn't circulate as the cruzado, cruzado novo and the cruzeiro do, but it does appear on a company's books and financial statements.
All these monetary maneuvers came to a dramatic halt when President Collor replaced the cruzado novo with the cruzeiro.
The money in the cruzado novo accounts cannot be converted to cruzeiros until 18 months after March 15, 1990, when the government promises to convert the money in 12 monthly installments, including monetary conversion (if inflation returns) plus 6% interest.
But to the dismay of accountants, the cruzado novo accounts were not totally frozen.
On the books, each cruzado novo account appears as a separate account that will vary according to cruzados novos, credited or debited.
In 1989, the cruzado novo (new cruzado) was created, again with three zeros lopped off.