Guarani: Paraguay's Strong Currency
Discover why the Guarani is one of the most stable currencies in South America and how this benefits your investments in Paraguay.
History of Guarani Stability
See how the Guarani has kept its stability against the dollar in recent years
| Year | PYG/USD Rate | Status |
|---|---|---|
| 2019 | 6,453 PYG/USD | Stable |
| 2020 | 6,900 PYG/USD | Stable |
| 2021 | 6,850 PYG/USD | Stable |
| 2022 | 7,200 PYG/USD | Stable |
| 2023 | 7,300 PYG/USD | Stable |
| 2024 | 7,400 PYG/USD | Stable |
A variation of only ~15% in 5 years, while the Brazilian Real lost more than 45% in the same period.
Comparison with Neighboring Currencies
The Guarani stands out for its stability in a region of volatile currencies
| Currency | Devaluation (5 years) | Average Inflation | Trend |
|---|---|---|---|
| Guarani (PYG) | ~15% | 4-5% p.a. | Stable |
| Brazilian Real (BRL) | ~45% | 6-10% p.a. | Volatile |
| Argentine Peso (ARS) | >500% | >100% p.a. | Crisis |
Why Is the Guarani Stable?
The economic fundamentals that guarantee the stability of the Paraguayan currency
Independent Central Bank
Paraguay's Central Bank maintains a conservative and prudent monetary policy
Fiscal Discipline
Public debt below 35% of GDP, one of the lowest in the region
Controlled Inflation
Historical inflation between 3-5% per year, within established targets
Dollarized Economy
A large share of transactions and contracts are made in dollars
International Reserves
Robust reserves that cover more than 6 months of imports
Investment Grade
BB+ rating by S&P and Fitch, close to investment grade
Benefits for Investors
How the Guarani's stability protects your wealth
Exchange Rate Stability
The Guarani keeps a stable value against the dollar, protecting investments
Economic Growth
GDP growing on average 4% per year, above the regional average
Wealth Protection
Your investment does not suffer from extreme exchange rate volatility
Open Economy
Free movement of capital with no exchange controls
Practical Investment Examples
See how the Guarani's stability impacts your investments in practice
US$ 100,000 investment in real estate
In Paraguay:
Average appreciation of 8% p.a. + rent in dollars = wealth preserved
In Brazil:
Appreciation in reais can be wiped out by currency devaluation
Bank account with US$ 50,000
In Paraguay:
Keeps purchasing power in dollars, yield of 3-5% p.a.
In Brazil:
Subject to IOF tax, exchange rate swings and taxation of 15-22.5%
Company billing US$ 200,000/year
In Paraguay:
Maximum tax of 10%, profit preserved in strong currency
In Brazil:
Tax burden of 30-40%, profit eroded by devaluation
Invest Safely in Paraguay
Take advantage of the Guarani's stability to protect and grow your wealth
Frequently Asked Questions
Is the Guarani a safe currency to invest in?
Yes. The Guarani has shown remarkable stability in recent years, with much smaller devaluation than neighboring currencies like the Real and the Argentine Peso. Paraguay's dollarized economy and conservative fiscal policy contribute to this stability.
Can I keep my investments in dollars in Paraguay?
Absolutely. Paraguay allows free movement of capital in any currency. You can hold dollar accounts, sign contracts in dollars and receive rent in dollars with no restrictions.
How does Paraguay keep its currency stable?
Through responsible fiscal policy, low public debt, an independent Central Bank, robust international reserves and a naturally dollarized economy that reduces pressure on the local currency.
What is inflation in Paraguay compared to Brazil?
Paraguay keeps inflation consistently between 3-5% per year, while Brazil frequently exceeds 6-10%. This means your purchasing power is better preserved in Paraguay.
Is it advantageous for Brazilians to invest in Paraguay?
Very much so. Besides exchange rate stability, Paraguay offers lower taxation, no tax on foreign gains, free movement of capital and geographic proximity to Brazil.
Could Paraguay have a crisis like Argentina?
It is very unlikely. Paraguay has solid economic fundamentals: low public debt, trade surplus, robust international reserves and a track record of fiscal responsibility. Argentina has decades of populist policies that destroyed its currency.