He American dollar was negotiated at closing to 7,161.94 guaraníes on averageso that it represented a change of 1.42% if compared with the value of the previous day, when it closed with 7,061.63 guaraníes on average.
If we consider the data of the last seven days, the American dollar accumulates an increase of 0.04%so that in year-on-year terms it still maintains a rise of 6.43%.
Analyzing this data with that of past dates, he accumulated three consecutive sessions in green. Regarding the volatility of the last days, it was slightly lower than the accumulated in the last year, therefore in this last phase it is trending less changes than usual.
The legal tender in Paraguay is the Guarani. and it was created in 1943, which has given it the record of being one of the oldest coins in Latin America.
At first it was divided into 100 cents, however, due to inflation, the cents are no longer used. Regarding its abbreviation, the acronym PYG is commonly used.
It was on October 5, 1943 when a decree was proclaimed establishing the Organic Monetary Regime of the Republic of Paraguay, with which sought to ensure stability, strengthen it and reaffirm monetary independence and sovereignty. With this decision, the Paraguayan peso was also replaced.
At that time, the guaraní was equivalent to 100 Paraguayan pesos, later they were changed to cents.
Banknotes and coins with the new denomination have been in circulation since 1944 to the present and now their issuance is regulated by the Central Bank of Paraguay.
It was not until 1998 that finally the first 100,000 guaraní bills were put into circulation, which today is the highest value banknote. For the beginning of 2020 this note was worth about 16 US dollars or 14 euros. Currently there are also bills of 20,000 and 2,000 guaraníes, as well as coins of 50, 100, 500 and 1000 guaraníes, of different sizes.
In the last two decades, Paraguay’s macroeconomic policies have benefited the economy, which has shown strong growth from 2004 to 2019, partly due to agricultural exports, hydroelectric power, and constitutional reforms that helped maintain stability. According to data from world Bankpoverty has been reduced from 40.2% to 19.7 percent.
However, as a result of the COVID-19 pandemic, growth has slowed: the economy contracted in 2019, poverty increased again to 22.3% in 2020 And these factors, along with inflation, are expected to keep poverty above pre-pandemic levels.
Despite the contraction registered in 2022, the Economic Commission for Latin America and the Caribbean (Cepal), hope that by this 2023 Paraguay registers a rise of 4%, while for the region it expects an exhaustion of the rebound effect after the pandemic with growth of 1.3 percent.
