Brazilian community bank uses local currency to boost eceonomy

Global Business

Some governments are approaching poverty reduction with programs tailored specifically for some communities. For instance, Brazil is trying to revitalize local economies by using a special currency.

CCTV America’s Lucrecia Franco reports.

Follow Lucrecia C. Franco on Twitter @LucreciaFranco

Brazilian community bank uses local currency to boost eceonomy

Brazilian community bank uses local currency to boost eceonomy

Some governments are approaching poverty reduction with programs tailored specifically for some communities. For instance, Brazil is trying to revitalize local economies by using a special currency. CCTV America’s Lucrecia Franco reports.

Rio de Janeiro’s Cidade de Deus favela aims to revitalize the use of a local currency which was first brought in three years ago aiming to boost trade and prevent money from leaving the community.

The currency is made up of five bills with values from 0.5 to 10 CDD (an acronym for Cidade de Deus) which equal to the real Brazil’s official currency and can only circulate within Cidade de Deus.

Local residents who buy CDDs at the bank are given discounts in businesses, small loans with no interest rate and advice to manage their money.