Up until 1994 when the famous Plano Real was introduced, Brazilian inflation was astronomical, and the country was a very cheap destination for anyone who had hard currency like the dollar. At a stroke, the Plano Real stabilized inflation, and the tightly controlled exchange made Brazil no longer cheap to foreigners. In early 1999, however, the global markets lost confidence - virtually overnight - in the Brazilian economy, sending ripples of hardship throughout the country as prices of imported goods shot up, in some cases doubling, and property values dropped, along with the value of the real against the dollar. As a consequence, Brazil has once again become a relatively inexpensive destination for foreigners, certainly noticeably cheaper than Europe or the USA.

US dollars are easy enough to change in banks and exchange offices anywhere, and are also readily accepted as payment by luxury hotels, upmarket restaurants, tour companies and souvenir shops in the big cities. Given the current instability of the real, we quote prices in this book in US dollars; this should give a reliable idea of what you'll be paying on the spot. At the time of writing, the Brazilian real is worth just over half a dollar - R$1.75=US$1 and R$2.80=£1 - but it is strengthening against it.