Guarani Strength Reduces Paraguayan Exporters' Revenues Amid Soaring Soybean Exports

The strengthening of Paraguay's national currency, the guarani, has reduced exporters' revenues despite a significant increase in goods shipments abroad.

According to recent data, the country's physical export volume rose by 27% this year. However, the strengthening of the guarani offset a substantial part of this increase for companies that receive payments in dollars.

The exchange rate stood at around 5,922 guarani per US dollar at the end of August, marking the strongest level of Paraguay's currency since 2018. The guarani strengthened by approximately 24% against the dollar over the year.

A record soybean harvest contributed to the strengthening of the guarani, increasing dollar inflows into the country. By July, Paraguay had exported a record 6.83 million tonnes of soybeans, with the dollar value of soybean shipments rising by nearly 49%.