[REVISION HISTORY]

Guaraní strength impacts credit, real estate and agriculture

Updated 13 times since CLSTR started tracking revisions of this situation.

What changed

2026-10-22 22:34 UTC → 2026-10-24 17:31 UTC · added ~~removed~~

The Paraguayan guaraní has continued its strengthening trend against the U.S. dollar, reaching its strongest level since late 2018. By late August 2026, the exchange rate sat at approximately G. 5,990. The Central Bank of Paraguay (BCP) attributes this to robust economic drivers, including record soybean revenues. This appreciation has created significant sectoral pressures. In the real estate sector, Raúl Constantino of CAPADEI noted that while 90% of construction costs are local, many sales are in dollars, a mismatch that is eroding profit margins. In agriculture, the UGP, APPEC, and ARP have warned that the falling dollar reduces local currency income, offsetting gains from rising cattle prices and threatening international competitiveness. Consequently, the UGP has proposed that the BCP purchase foreign currency to inject liquidity and stabilize the rate. Recent data from the Asociación Rural del Paraguay (ARP) indicates the exchange rate shift resulted in a loss of approximately G. 2.06 trillion (USD 349 million) for livestock production between September 2025 and August 2026. Héctor Cristaldo, president of the UGP, noted that the depreciation has reduced income for productive, industrial, and export sectors by roughly 25% when converted to guaraníes. ~~In response~~ By October 2026, reports from Consus Service & Merchandising SA (CSM) indicated the guaraní had appreciated approximately 36% against the U.S. dollar over a 24-month period, moving from G. 7,820 in October 2024 to ~~these pressures, Paraguay’s National Economic Team, led~~ G. 5,735 by ~~Minister~~ October 21, 2026. This trend is attributed to local factors such as a record harvest, a 25.7% increase in exports as of ~~Economy~~ September, investment-grade ratings from Moody’s and ~~Finance Oscar Lovera, has agreed to meet with production~~ S&P, and ~~commerce representatives to analyze~~ the ~~effects on economic activity. Minister Lovera stated that~~ placement of USD 2,100 million in guaraní-denominated bonds. Inflation remains below the BCP ~~has not identified speculative movements that would justify market intervention, noting that the falling dollar is also impacting state revenue, specifically customs collections.~~ target, with general inflation at 1.7% in September.

Versions

Only revisions since CLSTR began indexing content versions appear here. Select a version to see what changed compared to the one before it.