Paraguayan Currency: Guaraní (₲) – Complete Guide 2025
- Paraguay Strategy
- Sep 26
- 4 min read
Introduction
If you’ve ever wondered what the currency of Paraguay is and how it works in daily life, this article will give you all the answers. The guaraní (₲) is the official currency, circulating in coins and bills with many zeros that can be confusing for newcomers.
Here you’ll learn:
What coins and bills exist.
How it’s used in everyday life.
How stable the guaraní is.
Whether it’s better to save in guaraní or another currency.
Practical tips for travelers, investors, and new residents.
The Guaraní: Paraguay’s Official Currency
The Paraguayan guaraní was created in 1943, replacing the Paraguayan peso, and has remained the national currency ever since.
An interesting fact: the guaraní is the oldest currency in Latin America still in circulation, giving it strong symbolic value.
Its name honors the Guaraní people, central to Paraguayan culture. In fact, guaraní is not only the currency but also Paraguay’s second official language alongside Spanish.
Coins in Circulation
Currently, the following coins circulate: ₲50, ₲100, ₲500, and ₲1,000.
₲50: almost symbolic value, rarely used.
₲100: not very practical, though still appears as change.
₲500: becomes useful; worth about 7 US cents.
₲1,000: the most important, widely used in transportation and small purchases.
👉 Fun fact: many small coins end up forgotten in drawers, cars, or even on the street due to their low value.
Bills in Circulation
Bills are far more relevant than coins in daily life. Current denominations are:
₲2,000: plastic, handy for transport (≈ USD 0.26).
₲5,000: also plastic, ideal for quick purchases (≈ USD 0.70).
₲10,000: very common in shops (≈ USD 1.40).
₲20,000: popular for daily expenses (≈ USD 2.80).
₲50,000: good for medium expenses or dining out (≈ USD 7).
₲100,000: highest denomination (≈ USD 14).
All bills include security features: tactile marks, security threads, color-changing ink, and transparent windows on polymer notes.
Handling Money in Paraguay
Cash Culture
Although card payments are increasingly accepted, cash is still king in Paraguay, especially outside Asunción. In markets, taxis, motorbike taxis, fairs, and small shops, guaraní bills remain the standard payment method.
Frequent Rounding
Because small coins are scarce, prices are often rounded. Example: if something costs ₲6,900, you’ll likely pay ₲7,000. This simplifies transactions and favors sellers.
Many Zeros, Low Value
A lunch might cost ₲50,000 (≈ USD 7). It can sound overwhelming at first if you’re used to smaller figures, but in practice it’s simple: just divide by about 7,200 to estimate USD value.
How Stable Is the Guaraní?
Compared with other Latin American currencies, the guaraní shows relative stability.
2019: ₲6,200 per USD.
2025: around ₲7,300 per USD.
This reflects gradual depreciation, but without abrupt crises. Annual inflation usually ranges between 4%–5%, allowing better planning compared to neighboring Argentina.
Is It Better to Save in Guaraní or in USD?
The guaraní is practical for daily expenses, but for long-term savings most prefer dollars or euros.
Saving in guaraní: convenient for everyday needs and emergencies.
Saving in dollars: protects against local inflation and gradual depreciation.
Saving in euros: also possible, though less common in Paraguay.
👉 Recommendation: always keep some guaraní for daily use and dollars for savings or investments.
Opening Bank Accounts in Paraguay
If you plan to live in Paraguay, opening a bank account is essential.
Account in guaraní: easy to open with a Paraguayan ID card; useful for salaries and services.
Account in dollars: requires more documentation, such as proof of income; preferred by investors and savers.
Main banks: Banco Itaú, Sudameris, Banco Continental, Ueno Bank, Banco Atlas. Cooperatives are also popular among locals.
Practical Tips for Handling Money in Paraguay
Get familiar with bills and their zeros. ₲100,000 is only USD 14.
Always carry cash, especially in markets, transport, or rural areas.
Exchange money at currency exchange houses—rates are usually better than banks or airports.
Small coins are rarely used; expect rounding.
Use dollars for major transactions like real estate or cars.
FAQs
What is Paraguay’s currency?
Paraguayan guaraní (PYG, ₲).
What bills circulate?
₲2,000, ₲5,000, ₲10,000, ₲20,000, ₲50,000, ₲100,000.
Should I bring dollars?
Yes, especially for large expenses, but guaraní is always needed for daily life.
Where to exchange money?
At official exchange houses, banks, or cooperatives—never on the street.
Can I pay with a card?
Yes, in most large shops in Asunción, but cash is still essential in small businesses.
Is living in Paraguay expensive?
Not compared to neighbors; cost of living is lower, but lifestyle matters.
Final Thoughts
The guaraní is more than a means of payment: it’s part of Paraguay’s identity. While the zeros may look intimidating at first, it’s easy to adapt once you understand it.
If you plan to travel, invest, or move to Paraguay, knowing how the guaraní works is key to managing your finances with confidence.
👉 And if you need assistance opening bank accounts, planning your finances, or managing residency in Paraguay, our team can guide you every step of the way. Contact us today for personalized advice.
