The name cruzado was inspired by the name of an old Portuguese silver coin, which had value of 400/480 réis and that circulated in the time in which Brazil was still a colony of Portugal.

[2][3] On 28 February 1986 cruzado currency was created by José Sarney, the 31st president of Brazil, when Dilson Funaro was the minister of Finance, through Cruzado plan as part of a set of economic measures to freeze wages and prices.

It was marked by return of centavo as a subdivision of the currency, since it had been abolished in 1984, due to devaluation of the cruzeiro (second).

[5] There was a plan of 50 000 cruzados banknote with effigie of Carlos Drummond de Andrade to be released in 1989.

[citation needed] On 15 January 1989 cruzado novo was created by José Sarney 31st president of Brazil, when Naílson da Nóbrega was minister of Finance, through Summer plan (fourth stabilization plan) which was aimed at controlling rising inflation.