Exchange houses of Paraguayan began to refuse to receive the Argentine peso given the continuous depreciation of the national currency.
The president of the Association of Exchange Houses of Paraguay, Emily Mendozaclarified that they are not obliged to take currencies from other countries with the exception of the Guarani which is the local currency.
This was reflected in the newspaper “The National” of the neighboring country, which also revealed the drop in the Argentine peso: “In just eight days, the currency fell from 14 guaraníes to 12, marking a decrease of 4 guaraníes in the last 30 days,” he explained.
He added that over the last six months the Argentine currency went from trading at 23 to 12 guaraníes per unit. A year ago, each peso was exchanged for 30 guaraníes.
“This value remained stable until the end of October 2022. However, as of November of that same year, the currency began to decline dramatically, finally closing at 23 guaraníes,” the newspaper continued.
“Argentina Today it is experiencing a devaluation already projected by the Bank of America of the United States, of approximately 70% of its currency by the end of the year. This uncertainty gives fear not only to the peripheral economies of the Argentine government, which would be Paraguay, Uruguay, Chile, Brazilbut to Argentina itself,” said Emily Mendozathe head of the association, in a conversation with abc tv.
According to Mendozathe rejection of the Argentine peso is not only being seen in Paraguayanis being seen in all countries bordering Argentina.
“And it is because of the uncertainty, that, imagine, an exchange entity in the Brazil, Uruguay or Chilewhere it is difficult to get rid of that monetary asset, buy those assets, being that in a few months, in October, that monetary asset can have a zero value,” he explained.
Source: Ambito
