Itaú BBA - Scenario Review - Paraguay: The central bank curbs currency depreciation

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Scenario Review - Paraguay: The central bank curbs currency depreciation

June 14, 2018

No surprises for inflation in 2018

For the version with all charts and tables, please open the attached pdf file 

• The central bank in Paraguay intervened in the currency exchange market to curb the depreciation of the PYG against the USD in May. We maintain our YE18 and YE19 exchange rate forecasts at PYG/USD 5.800 and PYG/USD 6.000, respectively.

• We expect inflation at 4% this year and in 2019, and we do not foresee changes in the monetary policy rate.

• We maintain our GDP growth forecast at 4% for YE18 and YE19 based on our expectations for a good soy crop despite the slower economic growth projected for the region. 

Juan Carlos Barboza
Diego Ciongo

For the version with all charts and tables, please open the attached pdf file 



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