USDPYG - Devaluation goes on

At the beginning of the year, the Paraguayan Guarani has ended the correction phase that has been ongoing since 2016 and goes into the war (5) of encircled 3. The devaluation against the US-dollar is due to the general capital flight from the emerging markets to the security of the US-dollar. For the Paraguayans, this means a further devaluation of their home currency of more than 20% in the coming months and years. External foreign debt is approximately $ 17.35 billion and GDP is approximately $ 29.62 billion in 2017. Although foreign debt is apparently quite high at 58.6%, it also generates approximately $ 1,3 billion in export surpluses. With more than 66% of the economy geared towards the production, processing and marketing of self-produced agricultural products, the devaluation is likely to have a positive effect on the economy, which grew at over 4% in 2017.

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