The Central Bank of Paraguay (BCP) released a report explaining the reasons behind the dollar’s decline against the guaraní and justifying its neutral stance of not intervening in the foreign exchange market. The U.S. currency recently closed at 6,100 guaraníes, accumulating a 9% depreciation this year and nearly 25% over the past twelve months.
The BCP highlighted that the dollar’s depreciation results from a combination of external and internal factors. Among the external factors is the global weakness of the dollar, which has been losing strength in international markets, leading several currencies to appreciate, including the guaraní. Internally, structural improvements in Paraguay’s economy have strengthened confidence in the local currency, positively influencing the exchange rate.
The report also mentioned the impact of a record soybean harvest, which increased foreign currency inflows into the country, creating a temporary effect on the foreign exchange market. The Central Bank emphasized that this influence is cyclical and does not indicate a permanent change in the exchange rate trend.
In response to inquiries, especially from export sectors facing losses due to the guaraní’s appreciation, the BCP explained that while there was strong intervention to curb the dollar’s appreciation in the first half of 2025, the current decline of the U.S. currency does not justify similar actions. The Paraguayan Senate even requested a report from the BCP on the rationale for non-intervention, with a 15-day deadline for a response.
The Central Bank stated that it does not see signs of a restrictive monetary policy that would justify the guaraní’s appreciation, maintaining its neutral position. The institution will continue monitoring national and international macroeconomic and financial conditions, ready to act if financial balance is threatened or price stability compromised.