Economic agents lower US dollar expectations in Paraguay and Argentina

Economic agents in Paraguay and Argentina are adjusting their exchange rate expectations for the US dollar.

In Paraguay, the Central Bank of Paraguay (BCP) reports that economic agents have lowered their year-end exchange rate forecasts to G. 6,100 per dollar. For September, the median expectation is G. 5,947, while October is projected at G. 6,000. Looking further ahead, the exchange rate is expected to reach G. 6,300 by the end of 2027. These adjustments occur alongside steady growth projections, with GDP expected to expand by 4.5% in 2026 and 4% in 2027. Inflation expectations for the end of 2026 are set at 3%.

In Argentina, market analysts and futures contracts suggest a more moderate outlook for the dollar by December, with projections settling around $1,600. This is a decrease from previous estimates of $1,630. The stability is attributed to market interventions by Minister Luis Caputo. While the Market Expectations Survey projects a wholesale official exchange rate near $1,630 for year-end, experts anticipate a range between $1,505 and $1,660, supported by inflows from energy, mining, and potential revenue from the sale of public companies.