transactions that could take place in the free market, including gold related arbitrages, and remittances from non-resident local currency accounts, though always preserving full identification of players. After 1995, under Franco's direction, the Central Bank introduced several new rules for leads and lags in foreign trade, portfolio investment and turned “registry” of foreign capital inflows into a statistical event, and no longer dependent on authorization. Interestingly, however, one key innovation introduced along with liberalization of outflows was the selective restriction applied on certain types of inflows, mostly of a short-term nature. Capital surges had been producing restrictive measures in many countries, most visibly (for Brazilians) Chile, where restrictions took the form of a “quarantine”, or a minimum stay for foreign capital. In Brazil, instead, restrictions were implemented mostly as a tax of foreign exchange inflows, and without any “quarantine”. The formula was used many times over in later moments of foreign exchange abundance in order to reduce appreciation and/or the extend maturities of foreign liabilities. Plano Real The Real Plan had as central element a monetary reform effected through three successive measures: the first and more important introduced on February 28, 1994, created the URV (Unidade Real de Valor) mechanism, that is, a "money of account" to be freely used in contracts and obligations in order to realign relative prices and coordinate price fixing around the exchange rate. It was also established that at some point in the near future, the URV would become the national legal tender to replace then circulating cruzeiros reais. Just like the German rentenmark, and reflected also previous models of monetary reform conceived by André Lara Rezende and Persio Arida. At this moment, the new national currency, the URV would have its denomination conveniently changed to real. The second, launched at July 1. 1994, complemented the reform, demonetizing cruzeiros reais and actually issuing the real. Also, this second instrument introduced some very important institutional changes in monetary governance, with a major reform in the National Monetary Council, and monetary policy. The third, closing the cycle of monetary reform, was a detailed statute for indexation practices that was implemented exactly one year after the real was first issued. The URV existed as legal tender, though only as unit of account, during four months: its initial quote with respect to cruzeiro real was CR$647,50, more or less equivalent to one Dollar, as it was its final quote