Paraguay’s Central Bank Intervenes to Prevent Further Surge in US Dollar
Paraguay’s Central Bank (BCP) has taken proactive measures to curb the appreciation of the US dollar against the local guaraní. In response to the USD/₲ exchange rate surpassing 8,000, the BCP will inject $15 million daily into the market to stabilize the currency.
Amidst global uncertainty and seasonal influences, the BCP aims to mitigate exchange rate fluctuations. Argentine and Bolivian nationals’ significant purchases, alongside low water levels in the Paraguay River impacting imports, have fueled the dollar’s rise. Despite a brief drop on Friday, the dollar’s year-to-date increase stands at nearly 10%.
Eugenio Caje of the Association of Importers and Traders of Paraguay called for government collaboration to alleviate the pressure on importers. While BCP interventions continue, stakeholders express concerns over rising costs and advocate for policy revisions to ease the economic strain.