The US dollar is projected to rise in Paraguay, potentially reaching ₲ 8,000 by mid-2025, due to international tensions and a weak soybean market, despite Central Bank efforts to stabilize it. Experts, including Emil Mendoza and Miguel Mora, highlight the influence of global commodities and trade dynamics.
The US dollar continues to ascend in Paraguay, despite the Central Bank of Paraguay (BCP) intervening by selling US$ 216 million to local financial institutions to stabilize the currency. Experts anticipate that the dollar may attain a value of ₲ 8,000 within the first half of 2025, influenced by international conflicts and a declining soybean market.
Emil Mendoza from the Association of Exchange Houses emphasized that global tensions and poor soybean pricing are significant factors impacting the dollar’s trajectory. He remarked, “This is something atypical that occurs because of the international war that is damaging our market, causing the dollar to rise.”
Mendoza also highlighted the disappointing soybean production, attributing it to poor international prices influenced by tensions among the United States, the European Union, China, and India. Meanwhile, BCP board member Miguel Mora refuted suggestions that dollar leakage to Bolivia is contributing to the situation, asserting that minimal trade with Bolivia is accounted for through formal channels.
Mora clarified, “Unlike with Argentina, we do not have significant trade with Bolivia for this to be a determining factor in the exchange market.” He also noted that informal cash transactions contribute only 5%, which cannot exert substantial pressure on the dollar.
Both Mendoza and Mora concurred that declining prices of commodities like soybeans and corn, combined with uncertainties in global trade, are the primary drivers behind the dollar’s appreciation. Mora further indicated that although export revenues may alleviate some pressure later this year, the upward trend of the dollar is likely to continue in the near future.
In summary, the US dollar’s rising value in Paraguay can be attributed to a combination of international conflicts and weak soybean market conditions. Experts have identified global trade uncertainties as a major factor influencing this trend. While BCP has attempted to stabilize the currency through market interventions, long-term projections suggest further dollar appreciation.
Original Source: en.mercopress.com
