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Paraguayan guaraní reaches strongest level since 2018

Updated 2 times since CLSTR started tracking revisions of this situation.

What changed

2026-08-31 23:49 UTC → 2026-09-04 20:16 UTC · added removed

Currency dynamics in South America continue to create significant economic shifts, particularly regarding the strength of the Paraguayan guaraní. Initially, the guaraní’s strength was noted for reflecting fiscal discipline and helping to contain inflation, though it simultaneously began to lower import costs and reduce export earnings for commodities like meat and soy. As of late August 2026, the guaraní has reached its strongest level against the U.S. dollar since late 2018, with the exchange rate hitting approximately 5,990 guaraníes per dollar. This appreciation follows a trend where the currency strengthened from a rate of 6,575.71 at the end of 2025. This surge is largely driven by robust export receipts, including record soybean revenues, with total exports reaching US$12.13 billion in the first seven months of 2026. The continued appreciation has intensified tensions within Paraguay’s export sector. Industry representatives, such as the Chamber of Exporters (Capex), have warned that the trend—which has seen a roughly 20% appreciation over a 12-month period—risks trend risks business closures and mass layoffs among small and medium-sized enterprises. Exporters continue In response to call for exchange rate volatility, the local financial landscape is showing signs of adaptation. The Central Bank of Paraguay (BCP) to intervene by purchasing dollars to stabilize reported a 23.83% increase in dollar-denominated credit during the rate. Meanwhile, first seven months of 2026, totaling USD 14.126 billion, with significant growth in the BCP has maintained its policy rate at 5.50% construction and services sectors. Additionally, the market for currency forward contracts is expanding as businesses seek to hedge against fluctuations; the volume of August 25, 2026, forward operations increased by 30% compared to the previous year, with net international reserves reported at US$11.45 July contracts reaching USD 1.721 billion.

Versions

  1. 2026-09-04 20:16 UTC Paraguayan guaraní reaches strongest level since 2018
  2. 2026-08-31 23:49 UTC Paraguayan guaraní reaches strongest level since 2018
  3. 2026-08-31 17:40 UTC South American currency and trade dynamics

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