The US dollar is forecasted to rise to ₲ 8,000 in Paraguay by mid-2025, influenced by international tensions and weak soybean prices. Experts from the Association of Exchange Houses highlight that these factors significantly affect local markets. The Central Bank’s efforts to stabilize the currency through selling US$ 216 million have had limited success amid ongoing trade uncertainties.
The value of the US dollar continues to increase in Paraguay, with predictions suggesting it may reach ₲ 8,000 by mid-2025. This situation arises despite the Central Bank of Paraguay (BCP) selling US$ 216 million to local financial entities to achieve currency stabilization. The rise is attributed to international conflicts and a declining soybean market, which are crucial factors affecting dollar-associated products.
Emil Mendoza from the Association of Exchange Houses emphasized that ongoing global tensions and low soybean prices are significantly impacting the economy. He remarked on the atypical circumstances arising from international wars that are adversely affecting local markets, leading to a stronger dollar. Mendoza further explained that Paraguayan soybean production did not meet expectations, primarily due to unfavorable international pricing influenced by geopolitical issues involving major powers like the United States and the European Union.
BCP board member Miguel Mora addressed rumors suggesting that dollar outflows to Bolivia were driving these changes. He clarified that the minimal trade with Bolivia is conducted through formal channels, negating its impact on the exchange market. Mora also highlighted that informal cash transactions constitute only 5% of the market, thus not exerting considerable pressure on the dollar.
Echoing Mendoza’s assessment, Mora identified plummeting prices for commodities such as soybeans and corn, along with uncertainties in global trade, as primary factors for the dollar’s ascension. He indicated that while an increase in export revenues may relieve pressure intermittently later in the year, the trend of the dollar strengthening appears set to continue in the near term.
In conclusion, the US dollar’s increasing value in Paraguay is driven by global conflicts and weak soybean prices, with predictions estimating it may reach ₲ 8,000 by 2025. Insights from experts Emil Mendoza and Miguel Mora underline that international tensions and commodity price fluctuations are key to understanding this economic trend. Despite actions taken by the Central Bank to stabilize the currency, ongoing external challenges continue to prevail, suggesting persistent upward pressure on the dollar.
Original Source: en.mercopress.com
