May 5, 2026 at – 09:07
Despite the fall of the dollar at a global and regional level, this is not proportionally reflected on the shelves. Miguel Mora, member of the Board of Directors of the Central Bank of Paraguay (BCP), announced the factors that are slowing down the decline in prices, from the “expensive stock” in deposits to the pressure from neighboring currencies such as the Brazilian real.
Michael Moramember of the Board of Directors of Central Bank of Paraguay (BCP)explained that the fall of dollar In Paraguay it is not isolated, but is part of a global trend. He mentioned that in the region, countries such as Brazil, Colombia and Paraguay have seen their currencies “appreciate” against the dollar, since the US currency has weakened globally.
According to Mora, this happens because the United States lowered its interest rates and faces some economic uncertainty, which made large investors stop seeing the dollar as the safest refuge and prefer to bet on gold or emerging markets.
He explained that, given this scenario, South America becomes very attractive because it offers better economic returns and has very strong economies in the sale of raw materials, which attracts capital to our region.
Read more: Why don’t prices go down if the dollar falls? The importer version
Why don’t the prices on the shelves go down?
Mora explained that the lack of impact of the decline in the dollar on the Paraguayan family basket responds to a combination of logistical factors and regional dynamics.
On the one hand, local merchants argue that they still have stock acquired at a higher exchange rate and that they face operating costs in guaraníes that have not decreased, which stops an immediate adjustment in the shelves.
“I am not justifying, I am just saying the comment they make regarding why prices are not significantly reduced,” he added.
The “Brazil factor” and the cost of importing
On the other hand, Mora pointed out that the appreciation of currencies such as the Brazilian real also plays a key role. Because trade with neighboring countries takes costs into account in their own currencies, foreign suppliers could be marking their prices in dollars so as not to lose revenue in their local currency.
This means that, although the dollar falls in Paraguay, the cost of importing products from the region remains high, preventing the final consumer from seeing real relief in prices.
