The US dollar is projected to rise in Paraguay, potentially reaching ₲ 8,000 by early 2025 due to global tensions and weak soybean prices. Industry experts Emil Mendoza and Miguel Mora highlight that these factors, along with minimal trade leakage to Bolivia and informal currency transactions, are influencing the dollar’s value. While there may be some easing from export revenues later this year, a continued upward trend in the dollar is anticipated.
The US dollar is on a steady rise in Paraguay, despite the Central Bank of Paraguay (BCP) injecting US$ 216 million into local financial institutions in an attempt to stabilize the currency. Economic experts predict that the dollar could ascend to ₲ 8,000 within the first half of 2025. Factors influencing this increase include global tensions and a slumping soybean market, both of which are critically impacting items tied to the dollar.
Emil Mendoza from the Association of Exchange Houses emphasized that current international conflicts and poor soybean prices are pivotal factors affecting Paraguay’s economic landscape. 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 that reduced soybean production is exacerbating the situation, attributing the low prices to ongoing tensions among the United States, the European Union, China, and India.
In response to speculations regarding dollar movements towards Bolivia, BCP board member Miguel Mora refuted such claims. He asserted that the minimal trade volumes with Bolivia are properly managed through formal channels, stating that “we do not have significant trade with Bolivia for this to be a determining factor in the exchange market.” Moreover, Mora explained that informal cash transactions constitute only 5%, therefore they are insufficient to exert considerable pressure on the dollar.
Mora echoed Mendoza’s sentiments concerning the falling prices of commodities such as soybeans and corn, asserting that these, along with global uncertainties in trade, significantly contribute to the strengthening of the US dollar. Additionally, he noted the ongoing trade war among world powers and uncertainties surrounding US policy under President Donald Trump as contributing factors. Although he anticipated that export revenues might provide some relief later this year, Mora indicated that the dollar’s upward trend is likely to continue for the foreseeable future.
In summary, the US dollar’s projection to rise significantly in Paraguay is influenced by multiple factors, notably global tensions and declining soybean prices. Both Emil Mendoza and Miguel Mora underscore the importance of international dynamics and local commodity prices in shaping the currency’s strength. Despite the measures taken by the Central Bank, the outlook remains grim, with expectations of continued pressure on the dollar in the coming months.
Original Source: en.mercopress.com
