The dollar closed on Friday at around 7,680 guaraníes for sale in exchange offices and above 7,700 guaraníes.
Paraguay is suffering a strong rise in dollar which alerts economists about the rise in the price of imported products in the basic basket, without having an effect on inflation for now. One of the reasons, they say, is the strong demand for greenbacks from Bolivia and Argentina.
The quote of the dollar The dollar closed on Friday at around 7,680 guaraníes for sale in exchange offices and above 7,700 in the interbank market, while the reference rate of the Central Bank of Paraguay (BCP) was 7,737.96 guaraníes per dollar. The dollar closed on January 2, the first day of banking operations this year, at 7,281.04 guaraníes per dollar, according to the issuer’s marker.
Paraguay: Central Bank intervened to lower the dollar
This situation has forced the Central Bank to inject some $1.033 billion in the market since Januaryof which approximately 500 million dollars were allocated to avoid the ““sudden exchange rate volatilities”, explained BCP board member Miguel Mora to ABC Cardinal radio.
Mora said the appreciation of the dollar against other currencies is due, among other things, to “external factors” such as the rise in interest rates, which the Federal Reserve has maintained since July of last year between 5.25% and 5.5%, its highest level since 2001.
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Guarani exceeds estimates
Consulted by EFE, economist Víctor Benítez indicated that since 2018 the guaraní has marked an annual cumulative depreciation of 4.3% against the dollar, but this year the rise of the dollar has exceeded that estimate.
Benítez estimated the depreciation of the guaraní against the dollar at 6.5%.For the first time, it has risen above 4% annually, cumulatively,” The expert added, citing as an example that in 2018 the dollar was quoted at 5,938 guaraníes, on average, and in 2022 it stood at 7,200 guaraníes.
In the opinion of this economist, “It is normal that there is a greater demand” for the US currency at this time of year, when the exit of that currency is expected due to the payment of imports of goods used for trade during the end-of-year season.
Another factor that he believes may influence the rise of the dollar is a flight of currency to neighbors.
Source: Ambito
