The US dollar continues to rise in Paraguay, expected to reach ₲ 8,000 by 2025 due to international tensions and poor soybean prices. BCP’s efforts to stabilize the currency involved selling US$ 216 million, but experts identify broader global impacts and local economic conditions as key drivers of this trend.
The US dollar is on an upward trajectory in Paraguay, despite the Central Bank (BCP) injecting US$ 216 million into the market to stabilize the currency. Analysts project that the dollar could hit ₲ 8,000 by the first half of 2025 due to a combination of international tensions and declining soybean prices.
Emil Mendoza from the Association of Exchange Houses indicated that global conflicts and reduced soybean prices are affecting dollar-linked products. He emphasized, “This is something atypical that occurs because of the international war that is damaging our market, causing the dollar to rise.” Additionally, Mendoza identified poor soybean production and low international prices, attributing these issues to foreign tensions involving the US, EU, China, and India.
BCP board member Miguel Mora refuted claims that dollar outflows to Bolivia have affected the situation. He explained that Bolivia’s limited trade with Paraguay is well-managed through formal channels, stating, “We do not have significant trade with Bolivia for this to be a determining factor in the exchange market.” Furthermore, Mora suggested that informal cash transactions amount to only 5% of total activity, which is insufficient to exert notable pressure on the dollar.
Both Mendoza and Mora agreed that falling prices of commodities like soybeans and corn, along with uncertainties in global trade, are crucial factors driving the dollar’s increase. Mora noted the additional influences of the trade wars among major world economies and uncertainties surrounding US policies under President Trump. Despite a potential easing in export revenues later this year, Mora believes that the dollar’s rise will continue for the foreseeable future.
In summary, the rising value of the US dollar in Paraguay is primarily influenced by international tensions and weak soybean market conditions. Experts believe that the dollar may reach ₲ 8,000 in 2025. The BCP’s interventions and refutations of trade impacts from neighboring countries suggest that local economic conditions, coupled with global factors, are the main drivers of this currency fluctuation.
Original Source: en.mercopress.com
