If you’re looking at the Paraguay currency to USD exchange rate right now, you might notice something weird. Most South American currencies have spent the last few years getting absolutely hammered by the US dollar. But the Paraguayan Guaraní (PYG) is kind of doing its own thing. Honestly, it’s been one of the most resilient currencies in the region, and as of mid-January 2026, it’s holding a steady line that’s caught a lot of forex traders off guard.
Currently, the rate is hovering around 6,750 PYG to 1 USD.
That’s a far cry from the peak we saw back in April 2025, when it hit an all-time high of over 8,000. People were panicking then. There was talk of the Guaraní losing its "stable" reputation. But fast forward to today, and the Central Bank of Paraguay (BCP) has managed to steer the ship back into calmer waters. It’s a wild ride for a currency that’s been around since 1943 without ever losing three zeros—a feat almost unheard of in this part of the world.
The Reality of Paraguay Currency to USD Right Now
Let's be real: carrying around a 100,000 Guaraní note feels like you're a secret millionaire until you realize it’s only worth about $14.80.
The sheer number of zeros is why the government keeps flirting with the idea of a "Nuevo Guaraní." They want to lop off three zeros to make life easier, but so far, it’s just been talk. The logistics are a nightmare. Plus, there’s a certain pride in the Guaraní. It's named after the indigenous people and language that almost everyone in the country speaks. It’s a symbol.
In the last 12 months, the Guaraní has actually strengthened by about 14% against the USD. That’s massive. While neighboring countries are struggling with triple-digit inflation or political chaos, Paraguay just got upgraded to investment grade (BBB-) by S&P Global Ratings in late 2025. This changed the game for the Paraguay currency to USD outlook. When big international money sees a "stable" rating, they start buying Guaraníes to invest in local projects like the massive Paracel pulp mill. That demand for local currency keeps the exchange rate from sliding.
Why the Rate Is Moving (And Why It Might Drop)
It’s mostly about soybeans and beef. Seriously.
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Paraguay is an export powerhouse for commodities. When the world wants soy, dollars flow into the country. When there's a drought—which happens more often lately—those dollars dry up, and the Guaraní weakens. Right now, we’re seeing a bit of a tug-of-war.
- The "Investment Grade" Bump: Foreigners are actually looking for PYG-denominated debt.
- Interest Rates: The BCP has kept the policy rate steady at 6.00%. This is high enough to keep people from dumping their Guaraníes for Dollars.
- The Fed Factor: Everyone is watching the US Federal Reserve. If they cut rates in 2026, the USD will likely weaken, making your Paraguay currency to USD conversion even more favorable for the local side.
What Most Travelers Get Wrong About Exchanging Money
If you’re landing at Silvio Pettirossi International Airport in Luque, don't just run to the first exchange booth you see. You'll get fleeced. The spread—the difference between the buy and sell price—at airports is usually criminal.
Honestly, the best way to handle Paraguay currency to USD is to use a "Casa de Cambio" in downtown Asunción or Villa Morra. They are everywhere. Look for places like Cambios Chaco or Maxicambios. They usually have electronic boards with live rates that are much closer to the mid-market rate you see on Google.
Pro tip: Make sure your US dollar bills are crisp. Perfect. Brand new. If there is a tiny tear, a stray ink mark, or if the bill is from an older series (like the "small head" hundreds), most places will either refuse them or give you a worse rate. It’s annoying, but it’s a hard rule across Paraguay.
Using Cards vs. Cash
Can you use your US debit card? Mostly, yeah.
In the big cities, you’ve got no problem using Visa or Mastercard.
But here’s the kicker: Paraguay is still very much a cash society once you step outside the shopping malls. If you're heading to the Chaco or small towns like Yaguarón, you need Guaraníes. Also, check your bank's foreign transaction fees. If you're using a card that charges 3% on every swipe, you’re losing more than you would at a decent exchange house. Digital banks like Revolut or Wise are starting to gain traction, but they don't always support the PYG as a "holding" currency, meaning you're still at the mercy of the daily conversion rate.
The Future: Where is the Guaraní Headed?
Analysts at Trading Economics and local firms like Itaú are forecasting that the Guaraní will stay relatively stable through 2026. We’re looking at a target of around 6,400 to 6,600 PYG per USD by the end of the year.
Why the optimism?
The government is finally sticking to its fiscal deficit target of 1.5% of GDP. That’s boring accounting stuff, but it matters because it means they aren't printing money to pay bills. Inflation is expected to hit the 3.5% target this year, which is basically a miracle in South America.
Of course, there are risks. Paraguay is a small, open economy. If Brazil or Argentina—the "big brothers" of the region—have a total meltdown, it usually spills over. But for the first time in a long time, the Paraguay currency to USD relationship feels like it's being driven by Paraguay's own successes rather than just global accidents.
Actionable Steps for Dealing with PYG
If you are managing money in Paraguay right now, here is what you should actually do:
- Wait on large conversions: If you have USD and need to buy PYG for a project, the trend suggests the Guaraní might strengthen slightly more toward the 6,500 mark. Don't rush it unless you have to.
- Check the "Blue" vs. Official: Unlike Argentina, there isn't a massive gap between "black market" and official rates here. Just stick to the registered Casas de Cambio.
- Withdrawal Limits: Most ATMs (Cajeros) in Paraguay have a limit of about 1,500,000 PYG (roughly $220) per transaction. You might have to pay multiple fees to get a significant amount of cash out.
- Keep the 100k's: The 100,000 PYG note is the workhorse. While it’s the largest denomination, you won't have trouble breaking it in most supermarkets or gas stations.
The bottom line is that the Paraguay currency to USD rate is no longer the volatile mess it was a decade ago. It’s a boring, stable, and surprisingly strong currency that reflects a country finally finding its economic footing. If you’re traveling or investing, just keep an eye on the BCP’s monthly meetings—if they start cutting rates, that’s your signal that the Guaraní might start to soften again.
But for now? The Guaraní is holding its ground.
Next Steps for You:
Monitor the Central Bank of Paraguay (BCP) official website for the "Daily Reference Rate" to ensure you are getting a fair deal at local exchange houses. If you are planning a trip, verify with your bank if they support "No-Fee" international withdrawals at Sudameris or Banco Atlas ATMs, which are often the most reliable for foreign cards.