Saber Currency

Definition of 'Saber Currency'


A proposed Brazilian currency that would be handed out by the Ministry of Education to 7-year-olds to be redeemed only for university tuition. Saber currency is a complementary currency that was proposed by Bernard Lietaer to help Brazilian schools offer more educational opportunities, regardless of a lack of available funds. A type of educational voucher, the Saber is intended to facilitate more learning opportunities for a larger number of students, without adding any new financial pressures to the economy. The planned Saber currency has three capacities:
1. The Ministry of Education allocates Sabers to the youngest students (for example, 7-year-olds) in schools in economically disadvantaged areas. The young students must choose an older student (10 years old, for instance) as a mentor, and pays the mentor with the Sabers. The 10-year-old then does the same, finding an older student to mentor him or her. Down the line, 17 year olds will have collected the Sabers to be used towards university tuition. Redeemed Sabers are reallocated to young students.

2. Children or adults who help elderly or handicapped individuals can also earn Sabers.

3. Certain laborers could elect to be paid in the standard pay for the job, or at a reduced pay plus additional Sabers, an incentive for parents of children planning on attending university.

Investopedia explains 'Saber Currency'


The word "saber" is the Portuguese (and Spanish) verb "to know." After Brazil privatized the mobile telephone industry, the country enacted a 1% tax allocated for educational purposes. When the Education Fund had grown to about 3 billion reals (US$1 billion), alternative solutions for its use were discussed, including the implementation of the Saber currency. A goal would be to provide a "multiplier of learning" to increase the number of students who can afford a college education in Brazil.



comments powered by Disqus
Hot Definitions
  1. Federal Reserve Note

    The most accurate term used to describe the paper currency (dollar bills) circulated in the United States. These Federal Reserve Notes are printed by the U.S. Treasury at the instruction of the Federal Reserve member banks, who also act as the clearinghouse for local banks that need to increase or reduce their supply of cash on hand.
  2. Benchmark Bond

    A bond that provides a standard against which the performance of other bonds can be measured. Government bonds are almost always used as benchmark bonds. Also referred to as "benchmark issue" or "bellwether issue".
  3. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to sales or total asset figures.
  4. Oil Reserves

    An estimate of the amount of crude oil located in a particular economic region. Oil reserves must have the potential of being extracted under current technological constraints. For example, if oil pools are located at unattainable depths, they would not be considered part of the nation's reserves.
  5. Joint Venture - JV

    A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it.
  6. Aggregate Risk

    The exposure of a bank, financial institution, or any type of major investor to foreign exchange contracts - both spot and forward - from a single counterparty or client. Aggregate risk in forex may also be defined as the total exposure of an entity to changes or fluctuations in currency rates.
Trading Center