Ubérrima: in circulation for 20 days, municipal currency of Resplendor (MG) is now accepted in almost 70 commercial establishments
In an interview with Brasil 61, the Secretary of Economic Development and president of the Monetary Council of Resplendor, Wender Barbosa, says that the use of the uberrima has not only helped the municipality to retain local wealth — the main objective of the initiative — but also to attract money from neighboring cities.
“Our main objective is to retain the money within the municipality, to avoid evasion to other cities, which happens a lot here. We also have residents from neighboring municipalities who are coming to exchange reais for extreme money because of the discount in commerce”, he states.
In the first two weeks after the launch of the municipal currency, around 30 thousand ubers entered circulation. Local management expects this number to be ten times higher by the end of the year.
Pioneering
Located in the Rio Doce Valley, the municipality of Resplendor is the first in the country to adopt a local public currency. With the support of Sebrae Minas, the city created a plan to boost its economy and boost the generation of jobs and income.
Ubiquity is part of this strategy. By adopting a local currency — only accepted in the city — and offering benefits to those who use banknotes as a form of payment, the city hall hopes to boost domestic economic activity.
“We are meeting with traders and making the suggestion: ‘offer a benefit’. We have taxi drivers offering 10%, traders offering 15%, 20% discount to value Ubérrima, because, by law, it is a (real ) for a (huge) price. I can’t have a different exchange rate. So, what will increase the value of the currency is for the merchant to offer something attractive, be it in discounts, cashback, prizes”, explains Barbosa.
Created by Municipal Law 1206 of 2022, the uber value has the same value as the real. In other words, each R$ 1 is equivalent to Ub$ 1. According to the secretary, the initiative has the approval of the Central Bank and the Federal Audit Court (TCU). To bring security to the initiative, for each unit of capital issued, the city hall stores the corresponding value in reais in the Municipal Monetary Fund.
In addition to encouraging the use of uberrima by the population in local commerce, the city hall is already paying municipal social benefits, such as funeral assistance, pregnancy assistance, and basic food baskets, with the new currency. “Our bid to offer a basic food basket was with a company from Governador Valadares, but we changed a resolution from the Social Assistance Council and, now, the basket can be paid for with local currency. Around R$ 200 thousand to R$ $250,000 per year will stay within the municipality,” he explains.
According to the secretary, the use of uberrima by the population and traders is optional. “It’s another payment option that the city hall is offering to local businesses. If the person doesn’t want it, that’s fine.”
Enlargement
Resplendor City Hall is considering further expanding the use of municipal currency. The management consulted the Court of Auditors of the State of Minas Gerais to find out whether residents of the municipality will be able, for example, to pay the IPTU with extreme amounts, starting next year.
According to the secretary, it is also being considered to allow citizens to pay their debts to the municipality, currently around R$4 million, with the right to cashback. It would be another way to inject money into the local economy. “If I talk about R$4 million, with 20% cashback, I’m throwing another R$800 thousand at local businesses. But things have to be programmed, because I have printed a value of 299 thousand Ub$. I can’t do such an audacious program now”, he ponders.
The currency received its name after a competition held among the population. “Ubérrima” means “very abundant”, “fertile” and is present in the municipality’s anthem, which says: “Resplendor, uber-rich and beloved land, where life passes sweetly. You still have the footprints of the brave indigenous person engraved on your chest!”
By Brasil 61
