Guarani: the population, language and currency of Paraguay

It is not often that European travelers come to Paraguay as the country seems to be very remote and its political connections with Europe are very infirm. The economy of this sparsely populated country is mainly oriented on neighboring Latin American countries – Brazil and Argentina. This fact influences the situation with the country’s currency.

The national currency of Paraguay is Guarani. Guarani is the name for local tribe – its representatives inhabit the larger part of the country. The country’s official languages are: Guarani and Spanish. However, Guarani language is rarely used when it comes to business connections, but is often used for money legends. The type of the Guarani letters is the same as of the Spanish ones, so people who know Spanish but don’t speak a word in Guarani often wonder, why there is a su guarani (translated as “Your guarani” in Spanish) inscription on a 1000 Guarani bank note. Actually, in Guarani language “su” means “thousand”.

However, having come to Paraguay for a short time, you might not ever see local banknotes. What is it that makes them so “invisible”? First, it’s the fact that Guarani is an unstable currency, and its rate often drops. By the way, this is one of the reasons why there are no coins here: inflation washed it down from circulation.

Secondly, one thing that brings profits to Paraguay is the fact that it has long announced its territory a free trade zone. Brazilians and Argentineans come here to buy goods (including the ones made in Brazil and Argentina) for a much lower price than those in their homeland. They of course take foreign currency with them: American dollars, Brazilian reals and Argentine pesos. All these currencies are in much better position than Guarani. After the monetary reforms held by the neighbours of Paraguay, peso and real became even more stable than dollar.

Paraguayan citizens prefer foreign currency to local one and thanks to liberalism (or, to be more exact, the lack) in monetary control anyone can pay in currency they want to. In the eastern part of the country Guarani have become so rare, that only if you ask a shop assistant, he will try to find a couple of banknotes in his cash desk. As for the country’s capital, Asuncion, Guarani and foreign currency are equally widespread here. At the same time, in remote sparsely populated settlements Guarani still holds its position – this is thanks to the fact that foreigners rarely come here, and there is no one to bring foreign currency to the place.

By the way, because of the fact that several currencies are widespread here at a time, currency exchange is not a common operation in Paraguay. You will only have to use it if for some reason you took pounds, rubles or some other “exotic” monetary units with you. Local merchants aren’t well familiar with their rate of exchange, so they often prefer not to exchange them. In this case, you will have to search for a bank, which might be a difficult task too. Of course, it is easiest to find a bank in Asuncion. But what if you find yourself in the northern Paraguay forests or deserts? The best solution is evident: exchange money when you just come the country’s capital.

Paraguayan banks close early in the evening. The most common schedule is: 10 am – 4 pm, except for Saturday and Sunday. If you find yourself in the second largest Paraguayan city, Ciudad del Este, then you might have to cross the bridge to get to the neighboring Brazilian territory: the border is opened and Brazilian currency exchange offices work till late.

Paraguay is the cash country. Various “innovations” like credit cards and checks are not widespread yet, by you can use them for payment in different high-class capital venues (hotels, restaurants and shops). Still, most local people pay in cash.

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