Paraguay Poised to Have Most Resilient Currency in South America
EspañolAccording to consultants of the firm Consensus Economics, Paraguay’s guaraní has gained strength against the US dollar in the last 40 days. This trend is in direct contrast with that of regional neighbors Argentina and Venezuela, who have seen their currencies lose value, and will continue to do so, according to Paraguay’s La Nación.
Analysts of the private consulting firm believe the guaraní will have appreciated by 1.4 percent against the US dollar by December of this year.
Standard & Poor’s raised Paraguay’s credit rating from BB- to BB last month based on the results thus far of the Horacio Cartes administration.
According to Paraguayan economist Aníbal Insfrán, a great season for agriculture and livestock led authorities to relax their concerns over inflation. He added that Paraguay’s economy has benefited from the country being “macro-economically well prepared.” Moreover, Paraguay’s international debt is currently around 8 percent of its GDP.
Cartes took office in 2013 and has sought to revitalize the economy through programs to increase foreign investment and private-public partnerships. Paraguayan officials say the goals are more employment opportunities and better infrastructure.
Unlike Paraguay’s guaraní, the Consensus Economics prediction for the Venezuelan bolívar is a further 45 percent drop against the US dollar in 2014.