Paraguayan Guarani: Currency Guide for Expats

Understanding the Paraguayan Guarani

The Paraguayan guarani (PYG, symbol: ₲) is the official currency of Paraguay and one of South America’s oldest currencies. For expats accustomed to dollars, euros, or pounds, working with guarani takes some adjustment — mainly because of the large numbers involved. A cup of coffee might cost 15,000 guarani, and your rent could be 4,000,000. Do not panic — that is about $2 and $530 respectively.

Current Exchange Rate Landscape

As of 2026, the approximate exchange rates are:

• 1 USD = 7,300-7,600 PYG
• 1 EUR = 8,000-8,400 PYG
• 1 GBP = 9,200-9,700 PYG

The guarani has been relatively stable against the dollar in recent years, with gradual depreciation typical of emerging market currencies. Major fluctuations are uncommon, making financial planning more predictable than in some neighboring countries (looking at you, Argentina).

Quick Mental Math

Since the numbers are large, here are some shortcuts for USD-to-guarani conversion:

• Divide by 7,500 to get a rough USD equivalent
• 1,000 PYG ≈ $0.13 USD
• 10,000 PYG ≈ $1.33 USD
• 100,000 PYG ≈ $13.30 USD
• 1,000,000 PYG ≈ $133 USD

Once you get used to the zeros, daily transactions become second nature. Most expats develop an intuitive feel within a few weeks.

Where to Exchange Money

Banks

Banks offer currency exchange but typically at less favorable rates and during limited hours. Useful for large transactions where security matters.

Casas de Cambio (Exchange Houses)

Dedicated money exchange offices in commercial areas and shopping centers offer better rates than banks. Popular locations include:

• Shopping del Sol area
• Villa Morra commercial district
• Downtown Asuncion near the port area
• Major shopping centers

Always compare rates between a few exchange houses — differences of 50-100 PYG per dollar can add up on larger amounts.

ATMs

ATMs (cajeros automaticos) dispense guarani and are widely available. Key points:

• Withdrawal limits: Typically 1,500,000-3,000,000 PYG per transaction ($200-400)
• Fees: Your foreign bank may charge $3-5 per withdrawal plus a percentage. Local ATM fees are minimal.
• Networks: Bancard is the primary ATM network in Paraguay
• Tip: Open a local bank account to avoid foreign ATM fees

Informal Street Exchange

You will encounter informal money changers, particularly in downtown Asuncion and border cities like Ciudad del Este. While rates can be slightly better, the risks include counterfeit bills, short-changing, and theft. Stick to official exchange houses.

Using US Dollars in Paraguay

The US dollar is widely accepted in Paraguay, especially for:

• Rent: Many landlords quote and accept rent in USD
• Real estate: Property transactions are often denominated in dollars
• Large purchases: Cars, electronics, and major purchases
• Hotels and tourism: Tourist-oriented businesses accept USD

However, for daily transactions — groceries, restaurants, transportation, utilities — you need guarani. Small businesses, markets, and local shops operate exclusively in the local currency.

Dual-Currency Bank Accounts

Most banks in Paraguay offer accounts in both guarani and US dollars. Having both is highly recommended:

• Guarani account: For daily expenses and local transactions
• USD account: For receiving international income and preserving dollar value

See our banking guide for details on setting up accounts.

Banknotes and Coins

Banknotes in Circulation

• ₲2,000 (orange) — roughly $0.27
• ₲5,000 (green) — roughly $0.67
• ₲10,000 (purple) — roughly $1.33
• ₲20,000 (brown) — roughly $2.67
• ₲50,000 (red) — roughly $6.67
• ₲100,000 (blue) — roughly $13.33

The ₲100,000 note is the most common for larger transactions. Polymer (plastic) notes are increasingly replacing older paper notes.

Coins

Coins exist in denominations of ₲50, ₲100, ₲500, and ₲1,000, but they are rarely used in practice. Most transactions are rounded to the nearest ₲1,000.

Digital Payments

Paraguay’s digital payment landscape is developing:

• Debit cards: Widely accepted at supermarkets, restaurants, and stores in Asuncion
• Credit cards: Visa and Mastercard accepted at most established businesses
• Mobile payments: Growing adoption, particularly through bank apps
• QR code payments: Increasingly common at shops and restaurants
• Cash: Still king for markets, small shops, taxis, and informal transactions

The trend is clearly toward digital, but always carry some cash. You will encounter situations where cards are not accepted.

Tips for Managing Currency as an Expat

Keep Some USD as Reserve

While guarani is stable, having a USD reserve provides additional security. Most banks offer easy conversion between your guarani and USD accounts.

Avoid Airport Exchange

Like everywhere in the world, airport exchange rates are the worst. Exchange a small amount for immediate needs and do the bulk at a casa de cambio in the city.

Watch for Rounding

In practice, businesses round prices to the nearest ₲500 or ₲1,000. This is standard and expected — do not argue over ₲500 (less than $0.07).

Budget in USD, Spend in Guarani

Most expats find it easiest to budget monthly expenses in their home currency and convert to guarani for spending. This makes cost tracking and comparison simpler.

International Transfers

Moving money to Paraguay from abroad is typically done through:

• SWIFT bank transfers: Reliable but can take 3-5 business days with fees of $20-50
• Wise (formerly TransferWise): Good rates and lower fees, transfers in 1-3 days
• Western Union: Available for smaller, urgent transfers
• Cryptocurrency: Growing but not mainstream in Paraguay

Tax Implications

Your currency management connects to your tax obligations. Paraguay’s territorial tax system taxes only locally sourced income. Income received in USD from foreign sources remains tax-free regardless of whether you convert it to guarani. Consult with a local accountant for specifics about your situation, and make sure you have your RUC (tax ID) set up properly.

For more on managing your finances in Paraguay, explore our guides on banking and the cost of living.