Guaraní surge pits Paraguay’s exporters against the central bank
Paraguay's exporters' chamber has turned on the central bank over a dollar down nearly 20% in a year. On the same day, doctors extended a national strike for a 76% pay rise the government says would cost US$100 million. Twelve meat plants, meanwhile, won approval to export beef to Chile. The post Guaraní surge pits Paraguay’s exporters against the central bank appeared first on The Rio Times .
Paraguay's guarani currency has surged, causing tensions between the nation's exporters and the central bank. On August 25, 2026, the exporters' chamber, Capex, accused the central bank of abandoning the sector to a cheaper dollar. Meanwhile, doctors went on strike, demanding a 76% pay rise. The central bank, Banco Central del Paraguay (BCP), has not bought a single dollar to counter the appreciation since October 2025, a sharp change from its record dollar sales in the previous year.
With the guarani appreciating at a faster pace than ever before, exporters now face a cash market near 6,000 guaraníes per dollar, down from a 7,500 to 8,000 range they negotiated long-term contracts at. The government celebrated the clearing of twelve meat plants to sell beef to Chile, but Capex warns that export margins have virtually disappeared due to the currency's appreciation. Small and medium-sized exporters are particularly at risk, with plant closures and job losses looming if no action is taken.
The BCP insists the guarani's appreciation is a result of solid economic fundamentals, citing strong investment-grade ratings and a 7% year-on-year economic growth in the first quarter of 2025. They argue that holding an artificial dollar level would distort price signals and threaten medium-term stability. However, exporters argue for clear, symmetrical, and transparent rules for intervention in both directions, emphasizing the need for a return to neutrality in exchange-rate policy.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
