It was the third iteration of a Brazilian currency named "cruzeiro", and replaced the cruzado novo at par.

In late 1989 and early 1990, inflation reached increasingly rampant levels, with monetary deterioration throwing most of the available resources into financial speculation.

In an attempt to reduce this, President-elect Fernando Collor contacted President José Sarney, then at the end of his term and by mutual agreement, a bank holiday was announced from March 12 to 15.

The currency in circulation was renamed to Cruzeiro and due to the economic shock, the economy went into recession at the time.

In 1992, on the occasion of the Eco 92 in Rio de Janeiro, a new family of coins began to be issued.