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Economist Wildo González warns that a sharp depreciation of the guaraní would increase the cost of Paraguay's public debt, which is mostly denominated in US dollars, and could fuel inflation. However, a gradual adjustment could benefit exports and tax revenue without undermining stability.
guaraniwildo-gonzalezThe high volatility of the Brazilian real against the Paraguayan guarani is reversing the trade flow on the Brazil-Paraguay border, encouraging Paraguayans to shop in Brazil while reducing the purchasing power of Brazilian informal cross-border traders and affecting the value of remittances.
guaraniciudad-del-estepedro-juan-caballeroThe rise in prices in Argentina, driven by President Javier Milei's economic normalization measures, has significantly reduced the flow of Paraguayan shoppers to Clorinda, reversing a commercial dynamic that for decades had favored cross-border shopping tourism.
clorindajavier-mileiguaraniThe dollar fell again in Paraguay and was quoted at G. 6,120 in the spot exchange rate on Monday, the 15th, accumulating a 9% decline so far this year and 25% over 12 months, which has raised concerns among exporters and impacted customs revenue.
guaraniThe Central Bank of Paraguay recorded a record delinquency rate of 8.1% in the financial system in April 2026, driven by a 45.7% increase in overdue loans and growth in credit card debt balances, particularly among lower-middle-income consumers.
guaraniThe prices of asado cuts in Paraguay have practically tripled since 2010, while the minimum wage has barely doubled over the same period, highlighting a significant loss of purchasing power for Paraguayan families.
guaraniasadoThe Paraguayan stock market saw a 3% drop in total trading volume through May 2026 compared to the same period last year, reaching 22.2 trillion guaraníes, but bond issuances neared 1 trillion guaraníes, the highest cumulative amount so far this year.
cadiem-casa-de-bolsaguaraniThe Central Bank of Paraguay maintains a neutral stance and does not intervene in the dollar's decline against the guarani, attributing the depreciation to external factors, internal economic improvements, and a record soybean harvest.
guaraniThe 24% drop in the dollar against the guaraní so far this year drove a 31.7% increase in vehicle imports to Paraguay in the first quarter, with sales growth of over 19%, especially in the SUV segment. However, the surge has overwhelmed the capacity of authorized service centers, prompting dealerships to invest in infrastructure and spare parts.
guaranicamara-de-distribuidores-de-automotores-y-maquinariastoyotakiaParaguay's exchange houses posted a profit of G. 27,388 million (US$ 4.2 million) in the first quarter, down 18.1% from the same period in 2025. The guarani's appreciation against the dollar reduced the valuation margin by 35.7%, according to consultancy Mentu.
guaranimentuEconomic agents surveyed by the Central Bank of Paraguay (BCP) have lowered their projections for the dollar in May and for the close of 2026. The monetary authority reiterated that it does not intend to intervene in the exchange rate, attributing the trend to global and local factors, such as the strengthening of the guarani and capital inflows.
bcpeveguaraniThe strong appreciation of the guarani against the dollar is squeezing profits for exporters and sectors such as construction and real estate, leading to calls for intervention and a reassessment of projects, according to analysts and trade associations.
guaraniThe Minister of Industry and Commerce, Marcos Riquelme, acknowledged that the sharp fall of the dollar (about 25% in one year) is compressing margins and competitiveness of local industries, especially exporters who bill in dollars but have costs in guaranis. The US currency exchange rate opened the week at G. 6,120 in the effective exchange and G. 6,096 in the interbank market.
guaraniindustriaYani Areco, a Paraguayan from Bella Vista Norte, was expelled from a bus in Chile after a passenger mistook the eucalyptus aroma of her mate for marijuana. The argument escalated with insults in Guarani, and both were disembarked by the driver.
chileguaraniviralThe strong appreciation of the guarani against the dollar, with the exchange rate near G. 6,000, is reducing the tax base on imports and pressuring revenue for the National Directorate of Tax Revenues (DNIT). Director Óscar Orué states that although import volume grew 5.2% in dollars through April, the 20.5% depreciation of the US currency caused the taxable base in guarani to fall 16.2%, mainly affecting the customs component. DNIT maintains its revenue projection for 2026, betting on strengthened oversight and better performance of internal taxes to offset losses.
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