The Paraguayan guaraní (PYG) has been Paraguay’s official currency since 1944. Issued by the Banco Central del Paraguay, it’s a key symbol of the nation’s economic and cultural history. Although once divided into 100 céntimos, inflation has rendered céntimos obsolete. Today, the guaraní is among the lowest-valued currencies in the Americas.
Current Paraguayan Guaraní Denominations
Banknotes:
- 2,000 guaraníes
- 5,000 guaraníes
- 10,000 guaraníes
- 20,000 guaraníes
- 50,000 guaraníes
- 100,000 guaraníes
Coins:
Though coins were once issued in denominations of 50, 100, 500, and 1,000 guaraníes, these have been out of circulation since 2005.
Facts About the Paraguayan Guaraní
Its Name Reflects National Heritage
The guaraní is named after the native Guaraní people, who live in Paraguay, Brazil, and Bolivia. This choice honours Paraguay’s indigenous roots and culture, with the name “Paraguay” itself deriving from the Guaraní language.
It Relies Partially on Gold
Unlike many modern fiat currencies, the Paraguayan guaraní is partially backed by gold reserves. While most of its value comes from government assurances, about 5% is backed by gold.
The Peso Preceded the Guaraní
Before the guaraní, Paraguay used the peso. Due to extreme inflation, the guaraní was introduced to replace the peso at a rate of 1 guaraní for every 100 pesos, stabilising the economy.
The Real Was Paraguay’s Earliest Currency
From the 1800s to 1856, Paraguay used the real, a currency introduced during Spanish colonial rule. For a brief period, both the real and the peso circulated together, but the peso eventually replaced the real completely.
Counterfeiting Has Been a Challenge
In the 1980s and 1990s, counterfeiting became a major issue in Paraguay. In 2004, banknotes were updated with enhanced security features. Despite occasional counterfeit scandals, advanced printing technologies now make forgery increasingly difficult.
A New Currency Was Proposed but Abandoned
The Paraguayan guaraní’s low value has prompted discussions about introducing a new currency, the “Nuevo Guaraní.” However, concerns over public confusion and logistical challenges led to the decision to retain the current guaraní.
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Paraguayan Guaraní Exchange Rate
As of 2024, $1 USD is equivalent to approximately 7,252–7,790 PYG. Exchange rates fluctuate based on economic factors. For the latest rates, consult the Remitly app, banks, or online currency converters.
Tips for Exchanging and Using Paraguayan Guaraní
Where to Exchange Guaraní’
- Exchange money at banks or casas de cambio (currency exchange offices).
- Avoid airports, as they often offer less favourable rates.
Cash is Key
Paraguay is largely a cash-driven economy. Carry small denominations to simplify transactions.
Check for Counterfeit Bills
Examine the texture, watermarks, and raised printing on banknotes to ensure authenticity.
Use U.S. Dollars in Limited Situations
U.S. dollars may be accepted in some high-end hotels in the capital, Asunción, but most businesses require guaraníes.
FAQs: Paraguayan Money
What is Paraguay’s official currency?
The official currency is the Paraguayan guaraní (PYG), in use since 1944.
What denominations are available?
Banknotes range from 2,000 to 100,000 guaraníes. Coins, previously available in smaller denominations, are no longer in circulation.
How is the guaraní abbreviated?
The currency code is PYG, and the symbol is ₲.
Where can I exchange guaraníes?
You can exchange them at banks, casas de cambio, and some international financial centres.
Can I use U.S. dollars in Paraguay?
While U.S. dollars might be accepted in some hotels, exchanging for guaraníes is recommended.
What is the average annual income in Paraguay?
As of 2023, the average annual income in Paraguay was $6,200 USD.
Why is the guaraní so low in value?
The guaraní’s low value is due to historical inflation and economic factors, but it remains stable relative to past hyperinflation periods.
