Euro: opening quote today, September 26 in Paraguay

The price of the euro against the Paraguayan currency has remained stable in recent months. (Infobae)

The euro was trading at the beginning of the session at 7,728.72 guaraníes on average, which represented a change of 2.32% compared to the 7,553.56 guaraníes on average the previous day.

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Taking into account the last seven days, the euro It has accumulated an increase of 1.27% and since a year ago it has still maintained an increase of 1.12%.

In relation to previous days, it reverses the data from the previous day, when it closed with a decrease of 1.64%, without being able to establish a stable trend in recent days. The volatility figure is clearly higher than the data obtained for the last year (18.7%), so it is going through a phase of instability.

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The legal currency in Paraguay is the guaraní and was created in 1943, which holds the record of being one of the oldest currencies in Latin America.

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Initially it was divided into 100 cents, however, due to inflation, cents are no longer used. Regarding its abbreviation, the acronym PYG is commonly used.

It was on October 5, 1943 when a decree was proclaimed by which the Organic Monetary Regime of the Republic of Paraguay was established, 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 to the present day and now their issuance is regulated by the Central Bank of Paraguay.

It was not until 1998 that the first 100,000 guaraní banknotes were finally put into circulation, which today is the highest value banknote. By early 2020, this bill was worth about 16 US dollars or 14 euros. Currently there are also banknotes of 20,000 and 2,000 guaraníes, as well as coins of 50, 100, 500 and 1000 guaraníes, of different sizes.

Over the past two decades, Paraguay’s macroeconomic policies have benefited the economy, which has shown strong growth from 2004 to 2019, in part due to agricultural exports, hydroelectric energy, and constitutional reforms that helped maintain stability. According to data from the World Bank, poverty has been reduced from 40.2% to 19.7 percent.

However, as a result of the coronavirus pandemic, growth has slowed: the economy contracted in 2019, poverty increased again to 22.3% in 2020 and these factors, together with inflation, are expected to cause poverty remains above pre-pandemic levels.

Despite the contraction registered in 2022, the Economic Commission for Latin America and the Caribbean (ECLAC) expects that by 2023 Paraguay will register an increase of 4%, while for the region it foresees an exhaustion of the rebound effect after the pandemic with a growth of 1.3 percent.

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