Economy

Why privatization alone won’t save the Brazilian Mint

Why privatization alone won't save the Brazilian Mint

The Brazilian Mint, or Casa da Moeda, was created in 1694 by then-Portuguese King Pedro II. Like many such institutions, it is one of the oldest public agencies in the country. Its French counterpart, La Monnaie de Paris, was founded in 864 and is the oldest active company in the world.

The history of mints—and the money they produce—is tied to the history of a nation. A currency is an inherent element of sovereignty, a symbol of power and independence, and its strength is highly dependent on how governments run their economy.

Around the world, there are no more than 40 money-producing sites in the world today, and around half of them are located in Europe. In the 15 mints established in the Eurozone, production capacity (12 billion notes per year) triples local demand (4 billion notes). In order to survive, mints must diversify, reducing costs while enhancing the quality of their product, in the search for clients.

It is a race where the pace is dictated by the speedy advance of digital payment methods and changing consumption habits. And it is a race to which the Brazilian Mint—known for its hesitation to modernize—has arrived late.

A look under the hood

Brazilian Mint
The Brazilian Mint was created in 1694

Ironically, Brazil’s money-producing company is cash strapped. It is currently operating at 80-percent idle capacity, and the government has launched several voluntary...

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