Regional currency devaluation drives smuggling in Paraguay
RIO DE JANEIRO, BRAZIL – In its analysis, Basa Capital states that the dollar-guarani exchange rate closed 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.
The current dollar quotation in the retail market or exchange houses is 6,860 guaraníes on sale, at the close of last Friday, unchanged with respect to previous days.
The reference price as published by the Central Bank on its website was at 6,883.21 guaraníes, the quotation used by the wholesale or banking market.
SUPPORT
“We continue to place supports or floors at 6,800 and 6,700 guaraníes; while resistances or ceilings at 7,000 and 7,100 guaraníes,” Basa Capital points out.
MONEY MARKET
On the other hand, it explains that inflation for the month of October reached 1.6%. With this result, cumulative inflation for the year reached 6.3% and year-on-year inflation stands at 7.6%.
The main factors of inflation were: a) Increase in food items (beef, chicken, pork, flour and its derivatives, dairy products and derivatives); b) Fuels (gasoline, diesel, gas), and c) Durable goods (computer equipment, telephone, home appliances).
The analysis shows that the inflation rate exceeds the monetary authority’s reference.
Key Facts
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