MercoPress. South Atlantic News Agency

Paraguay's guaraní is most stable currency in the region, Bloomberg finds

Economy Minister Carlos Fernández Valdovinos highlighted his country's macroeconomic strength

Paraguay's guaraní (PY₲) has been highlighted as the most stable and highest-performing currency in Latin America for 2025. In a report published this week by the specialized outlet Bloomberg Línea, the Paraguayan currency has appreciated over 17% against the US dollar this year, outperforming Mexican and Colombian pesos.

While neighboring economies have struggled with fiscal crises and extreme currency volatility, analysts quoted by Bloomberg have dubbed Paraguay a regional “oasis” of stability, especially when compared to high inflation in Argentina and Venezuela, or against Brazil's political instability.

The guaraní’s strength is attributed to Paraguay’s consistent macroeconomic policies, including effective inflation control, stable interest rates, and a steady influx of foreign currency through exports and investments.

The guaraní's appreciation comes at a time when the greenback is showing global weakness, allowing the South American country's unit to position itself as a regional benchmark for financial reliability, particularly with Paraguay projected to become one of the top-performing economies in the region.

The UN's Economic Commission for Latin America and the Caribbean (ECLAC) forecasts Paraguay's Gross Domestic Product will expand 5.5% this year. In addition, the Central Bank of Paraguay (BCP) is even more optimistic, foreseeing 6% growth.

The country’s longstanding commitment to fiscal austerity and monetary stability is paying off. Inflation is targeted to reach 4% this year and 3.5% in 2026. Furthermore, the BCP has held its key interest rate at 6% since March 2024.

Economy Minister Carlos Fernández Valdovinos highlighted his country's macroeconomic strength, as reflected in improving grades from Fitch and S&P.

Additionally, favorable weather is expected to yield a massive soybean harvest (Jan–May 2026), while the beef sector is benefiting from high international prices (exports rose 24.3% this year).

While diversification into services and technology is attracting significant foreign investment, Paraguay is also pivoting toward “South-to-South” trade, focusing heavily on Brazil and Argentina to buffer against global trade wars.