Opening value of the dollar in Paraguay this March 1 from USD to PYG

After the opening of the markets, the American dollar is originally cited at 7,278.38 on averagewhich represents a variation of 1.59% compared to the average of 7,164.48 guaraníes of the previous session.

Referring to last week’s profitability, the American dollar record an increase of 1.27% and for a year it still maintains an increase of 8.43%.

By comparing this data with that of the previous days, it interrupts the flat sequence of market prices of the last two sessions. The volatility of the last seven days is a little higher than the data obtained for the last year (16.45%), presenting itself as an asset with larger variations than normal.

Guarani is the legal tender currency in Paraguay. and it was created in 1943 with what 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. 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 coronavirus pandemic, growth has slowed: the economy contracted in 2019, poverty increased further 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%.