Currency fluctuations impact economies in Paraguay and Honduras

Fluctuations in the value of the US dollar are creating distinct economic pressures in Paraguay and Honduras.

In Paraguay, the strengthening of the guaraní against the dollar has triggered alarms within the export sector. Exporters warn that the appreciation—which has reached approximately 20% over the last 12 months—is driving up local costs while reducing the value of dollar-denominated revenues. Industry representatives, including the Chamber of Exporters (Capex), are calling on the Central Bank of Paraguay (BCP) to intervene by purchasing dollars to stabilize the exchange rate, citing risks of business closures and mass layoffs, particularly among small and medium-sized enterprises.

In Honduras, the economy faces a dual challenge caused by the international decline of the US dollar index (DXY) and the depreciation of the lempira. This combination is increasing pressure on consumers, as the country relies heavily on imports for food and petroleum products. Analysts suggest that long-term downward pressure on the US dollar may be linked to rising US national debt and fiscal deficits, which could impact global currency markets.