Brazilian external debt in francs, 1888-1956

ABSTRACT Although the share of the debt in French francs in total Brazilian debt was of only 6% in 1930, the analysis is of interest due to the marked concentration of inflows just before World War I, to the concentration of indebtedness in high risk loans to states and municipalities and to the fact that France was the only creditor country to return to gold with a broken parity. The process of Brazilian progressive indebtedness in francs is described and the performance of loans in different currencies is evaluated in relation to alternatives such as the purchase of government bonds.