Paraguay’s Guaraní Hits Its Strongest Level Against the Dollar Since 2018
The guaraní closed near 5,990 to the US dollar on 28 August 2026, a level last seen in 2018. Grain, cattle and property chambers want the central bank to respond. The post Paraguay’s Guaraní Hits Its Strongest Level Against the Dollar Since 2018 appeared first on The Rio Times .
Paraguay's currency, the guaraní, reached its strongest level against the US dollar since late 2018, closing near 5,990 guaraníes per dollar by August 28, 2026, according to Banco Central del Paraguay (BCP) data. The appreciation has become a major issue for the country's business chambers, as recorded exports have contributed significantly to the stronger currency.
Soybean exports alone surged 49%, totaling $2.65 billion in shipments for the period. However, other sectors like beef saw declines. The dollar's weakening globally also played a role in the stronger guaraní. Manuel Ferreira, a former finance minister, attributes the appreciation to the disparity between banking market and dollar market interest rates.
Despite the currency's strength, net international reserves remained stable at $11.45 billion as of August 21, 2026. The BCP has not confirmed if its monetary policy directly drives the currency's appreciation. Paraguay maintains a Baa3 investment grade rating from Moody's and a BBB- rating from S&P Global, both with stable outlooks.
Investment inflows totaled $931 million in 2024, a 15% increase from the previous year, bringing the total direct investment to $10.4 billion. However, exporters complain about increased costs and predictability issues due to the strong guaraní.
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