As the currency of the Portuguese empire, it was in use in Brazil from the earliest days of the colonial period, and remained in use until 1942, when it was replaced by the cruzeiro.

The Portuguese real was the currency used by the first Portuguese settlers to arrive in the Americas, but the first official money to circulate bearing the name real was actually printed in 1654 by the Dutch, during their occupation of part of the Brazilian Northeast.

After that date, however, the Brazilian real started to become a separate currency unit when the value of the peça was raised by 10% in Brazil (but not in Portugal) to 7,040 réis.

It was not sub-divided in smaller units, and was affected by significant inflation during its long lifespan.

After the establishment of the Republic in 1889, the value of the currency fell, with a peg of 180 mg of gold for the one thousand réis set in 1926.

Between 1823 and 1833, the copper coinage of Brazil varied across the country, with denominations of 10, 20, 37+1⁄2, 40, 75 and 80 réis being produced.

The copper coinage was standardized across the country, with the introduction of countermarked coins for 10, 20 and 40 réis.

In 1833, the government issued copper exchange notes in denominations of 1, 2, 5, 10, 20, 50 and 100 mil réis.

Between 1850 and 1893, a number of private banks issued paper money in denominations between 10 and 500 mil réis.

In 1905, another Banco do Brazil was founded, which issued paper money between 1923 and 1942 in denominations of 1, 2, 5, 10, 20, 50, 100, 200, 500 and 1,000 mil réis.

In 1926, the Caixa de Estabilização issued gold notes in denominations of 10, 20, 50, 100, 200, 500 and 1,000 mil réis.

Denominations included 2, 5, 10, 20, 50, 100, 200 and 500 mil réis, with issues from Minas Gerais, Rio Grande do Sul and São Paulo.