The Guaraní: Understanding Paraguayan Currency and Exchange Rates
When we talk about Paraguay, we immediately think of Guarani—and we are often mistaken. Not the language, but the currency. The Paraguayan Guarani (PYG) is one of the least known currencies among Europeans, yet it is the one you will live with daily once settled in Asunción. How much is one guarani worth? Is it a stable currency? Should you convert everything to guaranis or keep your dollars? How can you optimize your exchanges to avoid losing money with each transaction?
This guide provides everything a French-speaking expatriate needs to know about the guarani, the Paraguayan currency: its functioning, exchange rate, conversion strategies, pitfalls to avoid, and best practices for managing your money in Paraguay in 2026.
The Guarani: Introduction to the Paraguayan Currency
A Little History
The guarani has been the official currency of Paraguay since 1943. It gets its name from the Guarani people, the country's majority indigenous ethnic group whose language is co-official with Spanish. The symbol for the guarani is ₲ and its ISO code is PYG. The currency is issued and regulated by the Central Bank of Paraguay (BCP).
Banknotes and Coins
The guarani has a peculiarity that confuses newcomers: the amounts are very high in absolute terms. A coffee costs 15,000 guaranis. Lunch at a restaurant costs 50,000 guaranis. Monthly rent is in the millions of guaranis. This is not a mistake—it's just that the guarani has a very low unit value.
Banknotes in circulation:
- 2,000 ₲ — the smallest banknote, rarely used
- 5,000 ₲ — for small purchases
- 10,000 ₲ — common
- 20,000 ₲ — common
- 50,000 ₲ — the most used banknote daily
- 100,000 ₲ — the largest banknote, to be handled with caution (risk of counterfeit bills)
Coins exist (50, 100, 500, 1,000 ₲) but are rarely used in daily life. Paraguay is primarily a banknote economy and, increasingly, a digital payment economy.
The Exchange Rate in 2026
The exchange rate of the guarani against the euro and dollar fluctuates daily, but the magnitudes are as follows (indicative rates for 2026):
- 1 USD ≈ 7,300 to 7,800 ₲
- 1 EUR ≈ 7,800 to 8,500 ₲
- 1 CHF ≈ 8,000 to 8,800 ₲
To simplify your daily mental calculations, remember this approximation: 10,000 guaranis ≈ 1.30 USD ≈ 1.20 EUR. Over time, you will think directly in guaranis without needing to convert.
Guarani Stability: Should You Be Concerned?
A Relatively Stable Currency for the Region
Unlike the Argentine peso (which lost over 90% of its value in a few years) or the Brazilian real (subject to strong fluctuations), the Paraguayan guarani is a relatively stable currency. The Central Bank of Paraguay pursues a prudent monetary policy, inflation is controlled (generally between 3 and 6% per year), and the country has not experienced a major currency crisis since the 2000s.
This stability is explained by several factors: an open and diversified economy (agriculture, industry, services), comfortable foreign exchange reserves, moderate public debt, and the absence of populist inflationary policies that have ravaged neighboring economies.
Short-Term Fluctuations
The guarani experiences seasonal fluctuations linked to agricultural cycles. During the soybean export period (March-June), the influx of dollars causes the exchange rate to drop slightly (the guarani strengthens). In off-peak periods, it's the opposite. These variations are generally around 3 to 5%—nothing dramatic for an expatriate, but enough to optimize your conversions if you pay attention to timing.
Long-Term Risk
In the long term, the guarani tends to depreciate slowly against the dollar—a common trend for most emerging market currencies. The average annual depreciation over the last ten years is approximately 2 to 4% per year against the dollar. This is manageable and predictable, but it is a reason not to convert your entire assets into guaranis—keep a significant portion in dollars or euros.
Dollars or Guaranis: How to Manage Your Currency in Paraguay
The Dollar: The Reference Currency
In Paraguay, the US dollar (USD) is the reference currency for all major transactions. Real estate is negotiated in dollars. Cars are sold in dollars. Rents in expatriate neighborhoods are often set in dollars (even if payment is made in guaranis at the daily rate). International commercial contracts are denominated in dollars.
Having a dollar bank account in Paraguay is essential for receiving international transfers, securing your savings, and making important transactions. It is your store of value—the safe of your Paraguayan assets.
The Guarani: The Currency of Everyday Life
For current expenses—supermarket, restaurants, gas, bills, leisure—everything is paid in guaranis. Local businesses do not accept dollars (except some large shopping centers and hotels). You need a guarani account that is regularly funded for your daily life.
Recommended Strategy: The Bi-Currency Account
Most Paraguayan banks offer bi-currency accounts (guaranis + dollars). The optimal strategy for an expatriate:
- Dollar account: receive your international income, store your savings, make important transactions (real estate, vehicle)
- Guarani account: transfer the necessary amount each month for your current expenses by converting from your dollar account
This strategy protects you against the depreciation of the guarani (your dollar savings retain their value) while providing you with the necessary local currency liquidity for daily life. Consult our comparison of Paraguayan banks to choose the bank that offers the best exchange conditions.
Where and How to Exchange Your Money
Bank Exchange
Your Paraguayan bank offers a conversion service between your dollar and guarani accounts. This is the safest and simplest method. The applied rate includes a bank margin of 1 to 2% compared to the interbank rate. For large amounts, do not hesitate to negotiate the rate—banks are often flexible for clients who convert regularly.
Exchange Houses (Casas de Cambio)
Casas de cambio are physical exchange offices found in shopping centers, downtown, and tourist areas. Their rates are often slightly better than those of banks (margin of 0.5 to 1.5%). The most reputable display their rates in real-time on LED screens. Always check the rate before making the transaction and count your banknotes in front of the cashier.
The best-known exchange houses in Asunción include Cambios Chaco, Maxicambios, and MyD Cambios. They are regulated by the Central Bank and offer reliable service.
Wise and Online Transfer Platforms
For transfers from Europe to Paraguay, Wise (formerly TransferWise) consistently offers a better exchange rate than traditional banks. The applied rate is the real market rate (mid-market rate) with a transparent commission of 0.5 to 1%. For an expatriate who regularly receives euros or dollars from Europe, Wise can save hundreds of dollars per year in exchange fees.
Street Exchange: To Be Avoided
In certain areas of downtown Asunción, informal money changers offer their services on the street. Even if their rates may seem attractive, the risk of receiving counterfeit bills is real. 100,000 guarani bills are the most counterfeited. Stick to official channels (banks and authorized casas de cambio) for your peace of mind.
Daily Payments
Cash (Efectivo)
Paraguay remains an economy where cash is king, especially for small transactions. Markets, small shops, taxis, and some restaurants only accept cash. Always carry 10,000 and 20,000 guarani bills—merchants rarely have change for 100,000 bills.
Bank Cards
Debit and credit cards (Visa, Mastercard) are accepted in most modern businesses, supermarkets, shopping centers, and restaurants in expatriate-friendly neighborhoods. Card payment is rapidly developing but is not yet universal—small businesses and markets still rely on cash.
Mobile Payments
Digital wallets like Tigo Money and Personal Pay are increasingly popular in Paraguay. They allow payment in shops via QR code, money transfers between individuals, and payment of certain bills. It is a practical complement to your bank card, especially for small transactions.
Local Bank Transfers
Transfers between Paraguayan bank accounts are almost instantaneous and inexpensive (often free within the same bank, 1 to 3 USD between different banks). This is the standard method for paying your rent, bills, and suppliers.
Optimizing Your Exchanges: Best Practices
Convert Only What You Need Each Month
Do not convert all your dollars into guaranis at once. Convert the amount needed for your current expenses monthly (rent, groceries, restaurant, transport). The rest stays in dollars in your savings account, protected against guarani depreciation.
Monitor the Exchange Rate
Seasonal variations of the guarani can make you gain or lose a few percent. Use apps like XE Currency or Google Finance to track the rate in real-time. Preferably convert when the guarani is strong (fewer guaranis for a dollar) and wait when it is weak.
Use Wise for International Transfers
For each transfer from Europe, the rate difference between a classic SWIFT transfer and Wise can represent 2 to 4% of the transferred amount. On a transfer of 3,000 EUR per month, this represents 60 to 120 EUR in savings—or 720 to 1,440 EUR per year. Opening a Wise account is free and takes 10 minutes.
Negotiate Rates for Large Amounts
If you are making a significant transaction (real estate purchase, vehicle, investment), do not settle for the rate displayed by your bank. Call your advisor and negotiate a preferential rate. For amounts over 10,000 USD, the negotiation margin is significant—you can often get a rate 0.5 to 1% better than the standard rate.
Inflation in Paraguay: Impact on Your Purchasing Power
Recent Figures
Inflation in Paraguay is controlled by the Central Bank, with a target of 4% per year (with a tolerance of +/- 2%). In recent years, effective inflation has been between 3 and 6%—significantly lower than in Argentina (100%+) or even some European countries post-Covid.
Impact for an Expatriate
An inflation of 4-5% means that your guarani expenses increase by this percentage each year if your habits do not change. A rent of 4,000,000 ₲ this year will likely be 4,200,000 ₲ next year. For an expatriate whose income is in euros or dollars, the impact is partially offset by the relative appreciation of your original currency against the guarani.
In practice, the cost of living in Paraguay remains so low compared to Europe—as shown in our cost of living guide—that even with an inflation of 5%, your purchasing power remains considerably higher than what you had in France, Belgium, or Switzerland.
Frequently Asked Questions About the Guarani
Can I Pay in Euros in Paraguay?
No, euros are not accepted as a common means of payment in Paraguay. You must convert your euros into dollars or guaranis. Euros can be exchanged in banks and casas de cambio, but the dollar is the reference foreign currency. Convert your euros to dollars via Wise before sending funds to Paraguay—the rate will be better.
Are Prices Displayed in Guaranis or Dollars?
Current prices (food, restaurants, services) are displayed in guaranis. Real estate, cars, and some luxury imported goods are often displayed in dollars. Rents in expatriate neighborhoods are sometimes negotiated in dollars but paid in guaranis at the daily rate.
What Should I Do If I Receive a Counterfeit Bill?
Counterfeit 100,000 guarani bills unfortunately circulate. Learn to identify security features: watermark, security strip, paper texture, hologram. If you receive a suspicious bill, do not accept it and report it. In shops, vendors systematically check 100,000 bills—do not take offense, it is a standard precaution.
Can I Use My European Bank Card in Paraguay?
Yes, international Visa and Mastercard cards work in most ATMs in Paraguay. Withdrawal fees include a machine commission (3 to 5 USD) plus fees from your European bank (variable). The applied exchange rate is generally the daily Visa/Mastercard rate, which is fair. But for regular withdrawals, a local bank account is infinitely more economical. Consult our Paraguayan bank account page for available options.
Conclusion: The Guarani, an Easy Currency to Master
The Paraguayan guarani may seem confusing at first—millions of guaranis for rent, tens of thousands for coffee. But after a few days, your brain adapts, and the amounts become intuitive. It is a stable, functional currency perfectly suited for daily life in Paraguay.
The key for an expatriate: keep your savings in dollars, convert the necessary amount into guaranis monthly for your current expenses, use Wise for your international transfers, and do not fall for unfavorable exchange rates at airports and street changers. With these best practices, managing your currency in Paraguay will be as simple as in Europe—and significantly more advantageous thanks to your Paraguayan tax residency and a cost of living that makes every euro transferred a small treasure of purchasing power.
Questions about managing your finances in Paraguay? Contact our team for personalized advice on account opening, international transfers, and optimizing your exchanges.