The Central Bank of Paraguay (BCP) spent G. 330,084 million (about US$ 45 million) on monetary control and inflation containment measures between January and April 2026, according to the institution's report. The amount represents a slight reduction of 3% compared to the G. 340,596 million recorded in the same period in 2025.
The main component of the expenditure was the remuneration of Monetary Regulation Instruments (IRM), which totaled G. 187,675 million, equivalent to 57% of the total. These instruments are used by the BCP to absorb excess liquidity from the financial system and control inflationary pressures.
Second, the remuneration of the legal reserve requirement in national currency (the amount the BCP pays banks for the money they keep immobilized) reached G. 82,041 million. The remuneration of the legal reserve requirement in foreign currency reached G. 53,370 million. Other components, such as the production of monetary policy instruments, totaled G. 6,998 million, and there were no other financial expenses recorded in the period.
In April, total expenses were G. 86,178 million, one of the highest levels of the year, driven mainly by payments linked to IRM and legal reserve requirements. Comparatively, in the first four months of 2025, the BCP had allocated G. 200,654 million to IRM, G. 61,272 million to reserve requirements in national currency, and G. 56,301 million to reserve requirements in foreign currency.
The data indicate that, although the cost associated with IRM fell compared to the previous year, spending on legal reserve requirements in national currency increased, reflecting the persistence of high levels of liquidity in the financial system. These expenses represent the quasi-fiscal cost that the BCP faces to maintain monetary stability, absorbing liquidity, managing interest rates, and keeping inflation within the target.