Directors of the Paraguayan Chamber of Exporters (Capex) met with the leadership of the Central Bank of Paraguay (BCP) to voice the sector's growing concern over the sustained depreciation of the dollar and its effects on export competitiveness. The meeting, held on Friday, was led by BCP President Carlos Carvallo and was attended by Board Member Miguel Mora, Chief Economist Gustavo Cohener, and other technical staff from the institution.
The US currency has accumulated a 23% drop in one year, closing Monday at 6,180 guaraníes on the effective exchange rate and 6,136 guaraníes on the interbank market. Capex emphasized that the purpose of the meeting was not to debate technical aspects of economic policy, but to present concrete cases that illustrate the impact of the exchange rate on different productive sectors.
One of the most critical examples was the export of processed cassava food products to the United States, a market that took years of work to consolidate. Currently, the combination of high costs and the unfavorable exchange rate generates significant losses for an activity on which more than 20,000 families in the department of San Pedro depend.
The exchange rate crisis also affects the meat industry, with emphasis on the pork sector, which involves around 50,000 producer families nationwide. During the meeting, the difficulties facing the forestry industry and its derivatives were also presented, against a backdrop of major investments in Paraguay, along with the effects on exporting recycling industries, whose production chain supports thousands of low-income people who see their income threatened by the halt in export operations.
BCP authorities showed a willingness to listen to the concerns and committed to integrating this real-economy data into their reports, macroeconomic analyses, and national accounts studies. At the end of the hearing, both parties agreed to maintain a permanent channel of dialogue to monitor the evolution of the foreign exchange market and address in a timely manner the challenges affecting sustainability and employment in the export sector.