Paraguay Central Bank accelerates dollar sales

RIO DE JANEIRO, BRAZIL – Herken said that this reaction of the BCP is the result of prospects of a further increase in the price of oil.

The bank sold US$70 million in the market last week and thus accumulates US$1.3 billion sold to date in 2021. “There is still an important international reserve of approximately US$9.6 billion,” he added.

However, the analyst highlighted that the BCP is also trying to contain market inflation and lower it, considering that much of what is imported has become more expensive.

“By keeping the dollar lower, it is preventing prices from rising. They will not drop abruptly, but it is part of their policy for the end of the year,” he said.

In 2020, the BCP sold approximately US$1.7 billion, while this year it has sold approximately US$1.3 billion of the U.S. currency in only 10 months.

The current market quotation is 6,850 guaraníes per unit for sale, 10 points less than yesterday, according to the exchange market. As for the reference price or wholesale dollar, the figure stands at 6,863 guaraníes, as published this afternoon by the Central Bank of Paraguay.

On the other hand, in its weekly analysis, Basa Capital also highlighted the Central Bank’s intervention to try to keep the exchange rate stable and low. In its analysis it indicates that the dollar-guarani exchange rate is closing the first week of November below 6,900 guaraníes.

“The Central Bank of Paraguay (BCP) has dramatically intensified the sale of dollars to the market, managing to push the pair back by approximately 30 points,” it states.