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0 Real Monte Castelo

Issuer Brazil
Year
Type Fantasy banknote
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Obverse lettering REPÚBLICA FEDERATIVA DO BRASIL TOMADA DE MONTE CASTELO 21 DE FEVEREIRO DE 1945
(Translation: Federative Republic of Brazil Capture of Monte Castelo February 21st, 1945)
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Reverse lettering REPÚBLICA FEDERATIVA DO BRASIL ZERO REAL
(Translation: Federative Republic of Brazil Zero Real)
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Comments

The "0 Real" municipal scrip notes issued by small Brazilian municipalities in the early 1990s belong to one of the stranger episodes in modern monetary history. Following the Collor Plan's catastrophic freezing of bank accounts in March 1990, liquidity in daily commerce collapsed almost overnight. Several interior towns — Monte Castelo among them — responded by issuing their own local currency outside any federal authorization, simply to keep markets functioning.

Monte Castelo is a small municipality in Santa Catarina state. The denomination "0 Real" predates the federal Real currency introduced in 1994, making the name coincidental rather than derivative.

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