Paraguayan Guaraní appreciates 36% against the US Dollar over two years

The Paraguayan guaraní has appreciated by approximately 36% against the US dollar over a 24-month period. According to the October 2026 Macro Monitor Paraguay report by Consus Service & Merchandising SA (CSM), the exchange rate moved from G. 7,820 in October 2024 to G. 5,735 by October 21, 2026.

This appreciation is attributed to local economic factors rather than global trends. Key drivers include a record harvest, an export increase of over 25.7% as of September, investment-grade ratings from Moody’s and S&P, and the placement of USD 2,100 million in guaraní-denominated bonds to non-residents. Additionally, companies have unwound dollar positions through forward purchases.

Inflation remains significantly below the Central Bank of Paraguay (BCP) target. General inflation stood at 1.7% year-on-year in September, while core inflation was 1.2%, compared to the BCP's 3.5% annual target. While fuel prices have risen due to international oil market tensions, the report notes that without fuel, inflation would be around 1%.