Exporters Alert Paraguay's Central Bank to Dollar's Impact

Paraguay's export sector is sounding the alarm over the severe impact of the US dollar's continuous decline against the Paraguayan Guaraní. The Paraguayan Chamber of Exporters (Capex) has formally communicated its deep concerns to the Central Bank of Paraguay (BCP), highlighting how the depreciating dollar is negatively affecting export activities. The US dollar has seen a significant drop of 23% over the past year, closing at G. 6,180 on the effective exchange market and G. 6,136 on the interbank market. Capex representatives met with BCP authorities, including its president Carlos Carvallo, to present the reality faced by exporting companies. They shared specific cases illustrating the consequences of the current exchange rate on various productive sectors. Among the most affected industries cited are meat producers, banana growers, and the recycling sector. For instance, the export of cassava-derived food products to the United States, a market painstakingly developed over years, is now facing significant losses due to the combined pressure of costs and the unfavorable exchange rate. This situation directly impacts over 20,000 families in the San Pedro department who rely on this industry. The meat industry, particularly pork production, which supports approximately 50,000 families nationwide, is also feeling the strain. The forestry industry and recycling businesses that export their products are similarly affected. Capex emphasized that thousands of low-income individuals depend on these export chains, and the dollar's depreciation is creating substantial difficulties for their operations. Despite these challenges, Capex acknowledged the BCP's willingness to listen and understand the exporters' situation, expressing hope that this information will be incorporated into the bank's ongoing analyses.