Closing value of the dollar in Paraguay this March 22 of USD to PYG

The US dollar traded at the close at 6,958.49 guaraníes on average, up 1.6% from 6,848.63 Guarani on average the previous day.

Compared to the last seven days, the US dollar accumulated an increase of 1.75%, so for a year it has still maintained a rise of 4.58%. Compared to previous days, it turned around the result of the previous day where it experienced a decrease of 1.74%, recently showing a lack of stability in the result. In reference to the volatility of the last week, it was clearly higher than that accumulated in the last year, indicating that it is going through a phase of instability.

In the annual photo, the US dollar has even changed by a high of 7,093.80 guaraníes on average, while its lowest level has been 6,759.87 guaraníes on average. The US dollar is positioned closer to its maximum than to its low.

A Strengthened Paraguayan

Guarani Guaraní is the legal tender in Paraguay and was created in 1943, which holds the record of being one of the oldest coins in Latin America.

At first it was divided into 100 cents, however, due to inflation, cents are no longer used. About its abbreviation, the acronym PYG is commonly used.

It was on October 5, 1943, that a decree was proclaimed establishing the Organic Monetary Regime of the Republic of Paraguay, which sought to ensure stability, strengthen it and reaffirm monetary independence and sovereignty. This decision also replaced the Paraguayan peso.

At that time, the guarani was equivalent to 100 Paraguayan pesos, then they were changed to cents.

Banknotes and coins with the new denomination have been in circulation from 1944 to the present day and their issuance is now regulated by the Central Bank of Paraguay.

However, it was until 1998 that the first 100 000 Guaraní banknotes were finally put into circulation, which is today the highest value banknote. At the beginning of 2020, this ticket was worth about 16 US dollars or 14 euros.

Currently, there are also banknotes of 20 000 and 2000 Guarani, as well as coins of 50, 100, 500 and 1 000 Guaraní, of different sizes.

Among the controversies surrounding the Paraguayan currency is the 2009 plan, when it was proposed to eliminate the three zeros against Guarani, which would also be called “new guaraní”, but in 2013 a contradictory project came to light. Both initiatives have been suspended.

In the economic sphere, Paraguay experienced great growth in 2021 despite the coronavirus pandemic, growing 4.6%; in addition, the Economic Commission for Latin America and the Caribbean (ECLAC) points out that the Gross Domestic Product (GDP) could grow by up to 3.8 percent.

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