Dollar: opening quotation today February 14 in Paraguay

He American dollar is traded in today’s session at 7,279.71 on averagewhich implied a variation of 1.76% compared to the 7,153.56 guaraníes on average the day before.

Considering the last seven days, the American dollar shows an increase of 1.42%so that in the past year it still maintains a rise of 6.48%.

Compared to previous dates, it reverses the roles compared to the previous session, during which it marked a drop of 1.89%, recently showing a lack of stability in the result. The volatility referring to the last week is higher than the data obtained for the last year (16.68%), so the value experiences greater changes than the general trend.

The resistance of the Paraguayan Guarani

The legal tender currency in Paraguay is the Guaraní. and it was created in 1943, earning it 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. As for its abbreviation, the acronym PYG is commonly used.

On October 5, 1943, a decree was issued establishing the organic monetary regime of the Republic of Paraguay, with which sought to ensure stability, strengthen it and reaffirm monetary independence and sovereignty. With this decision, the Paraguayan peso was also replaced.

At that time, the guaraní was equivalent to 100 Paraguayan pesos, then they were exchanged for cents.

Banknotes and coins with the new denomination have been in circulation since 1944 until today, and their issuance is now regulated by the Central Bank of Paraguay.

It was not until 1998 that finally the first 100,000 guaraní banknotes were put into circulation, which is today the banknote with the highest value. At the beginning of 2020, this note was worth around 16 US dollars or 14 euros. Currently, there are also 20,000 and 2,000 guaraníe notes, as well as 50, 100, 500 and 1,000 guaraníe coins, in different sizes.

Over the past two decades, Paraguay’s macroeconomic policies have benefited the economy, which experienced strong growth from 2004 to 2019, thanks in part to agricultural exports, hydroelectric power and constitutional reforms that helped maintain stability. According to data from world Bankpoverty was reduced from 40.2% to 19.7%.

However, due to the COVID-19 pandemic, growth has slowed: the economy contracted in 2019, poverty increased again to 22.3% in 2020 And these factors, along with inflation, are expected to keep poverty above pre-pandemic levels.

Despite the contraction recorded in 2022, the Economic Commission for Latin America and the Caribbean (Cepal), hopefully by 2023 Paraguay recorded a rise of 4%, while for the region, it expects the rebound effect to be exhausted after the pandemic with a growth of 1.3%.