The US dollar in Paraguay is expected to rise, potentially reaching ₲ 8,000 by 2025, attributed to international tensions and a poor soybean market. Despite the Central Bank’s efforts to stabilize the currency, factors like falling commodity prices and global trade uncertainties continue to influence the dollar’s value.
The US dollar has been experiencing a continuous rise in Paraguay, with predictions that it may reach ₲ 8,000 in the first half of 2025. This trend persists despite the Central Bank (BCP) intervening by selling US$ 216 million to stabilize the currency. Factors influencing this increase include international tensions and an underperforming soybean market, which has been linked to rising product prices tied to the dollar.
Emil Mendoza from the Association of Exchange Houses emphasized that the rising dollar is largely due to global conflicts impacting market stability. He remarked, “This is something atypical that occurs because of the international war that is damaging our market, causing the dollar to rise.” Mendoza further noted the poor performance of soybean production and its adverse effects due to international pricing issues.
Miguel Mora, a member of the BCP board, countered suggestions that dollar leakage to Bolivia contributes to the dollar’s rise. He indicated that Paraguay’s trade with Bolivia is minimal and primarily regulated through formal channels, emphasizing, “we do not have significant trade with Bolivia for this to be a determining factor in the exchange market.”
Mora also pointed out that informal cash transactions account for only 5% of the total, thereby lacking the capacity to exert considerable pressure on the dollar’s valuation. He reiterated Mendoza’s views by stating that decreasing commodity prices, combined with uncertainties in global trade, are pivotal forces behind the dollar’s appreciation. Furthermore, he acknowledged that while export revenues might alleviate some strain in the future, the upward trend of the dollar is expected to continue for the foreseeable future.
In summary, the US dollar is projected to rise in Paraguay due to various factors, including international conflicts and a declining soybean market. Despite interventions from the Central Bank, the currency remains vulnerable to global economic uncertainties. Analysts anticipate that the dollar may reach ₲ 8,000 by early 2025, as both Mendoza and Mora identify external pressures and falling commodity prices as causes for the ongoing increase.
Original Source: en.mercopress.com
