Paraguayan Guarani (PYG) exchange-rate chart to US Dollar (USD)

The PYG/USD currency pair represents the exchange rate between the Paraguayan Guarani (PYG) and the US Dollar (USD), quoted as the number of Guaranies required to purchase one US Dollar. This directed pair is primarily used by importers, exporters, and remittance senders in Paraguay who need to convert local currency into dollars. An appreciation of the Guarani (a lower PYG/USD rate) means that fewer Guaranies are needed to buy a dollar, benefiting Paraguayan consumers of imported goods and those with dollar-denominated debts.

The structural drivers of PYG/USD stem from the policies of the Banco Central del Paraguay (BCP) and the US Federal Reserve. The BCP manages the Guarani through a managed float, intervening to smooth volatility, while the Fed sets US interest rates. The interest rate differential between Paraguay and the US influences capital flows: higher rates in Paraguay can attract carry trade inflows, supporting the Guarani. Inflation differentials also matter—Paraguay's inflation has historically been moderate but can spike due to food and energy prices. Trade flows are significant: Paraguay exports soybeans, beef, and electricity (from Itaipu Dam), and imports machinery, fuels, and consumer goods. Commodity price cycles affect export revenues and thus the supply of dollars. Remittances from Paraguayans abroad and foreign direct investment also contribute to the balance of payments. Risk sentiment in emerging markets can drive capital flight to the dollar, pressuring the Guarani.

Over the past several years, the PYG/USD rate has experienced gradual depreciation of the Guarani against the dollar, reflecting structural factors such as Paraguay's higher inflation relative to the US and periodic external shocks. The BCP's intervention has aimed to prevent excessive volatility. Without specific historical data, the general trend has been one of slow weakening, with periods of stability when commodity prices are favorable. The pair remains sensitive to global risk appetite and US monetary policy shifts, which can cause short-term fluctuations. For a detailed historical analysis, refer to the interactive chart on this page.