The episode that became known as the savings confiscation occurred in Brazil in 1990, during the government of President Fernando Collor de Mello. On March 16, 1990, Collor announced a package of economic measures with the aim of combating the hyperinflation that the country was facing at the time. This package included the freezing of bank accounts, known as the savings confiscation.
According to the measure, the checking and savings accounts of all Brazilians were temporarily blocked. The government withdrew funds from accounts that had more than 50,000 new cruzados (the currency at the time), and this money was “frozen” for a period, with the promise of returning it in monthly installments after a few months. The measure directly affected the population’s confidence in the banking system and caused great revolt, as many people lost part of their savings.
The main purpose of the confiscation was to reduce the circulation of money in the economy and to try to control inflation, which was out of control. Although the measure managed to temporarily reduce inflation, it also created a huge crisis of confidence in the government and financial institutions, in addition to increasing the economic suffering of the population.
This episode is remembered as one of the most controversial moments in Brazil's economic history, and to this day it is discussed in relation to its political and social consequences.
