The Paraguayan Monetary Unit refers to the official currency of Paraguay, known as the Guaraní. It is the legal tender in the country and is denoted by the currency code PYG. The Paraguayan Monetary Unit is the medium of exchange used for the trade of goods and services within the borders of Paraguay.
One Guaraní is subdivided into 100 céntimos. Coins in circulation are available in denominations of 50, 100, 500, and 1,000 Guaraníes, while banknotes are issued in denominations of 2,000, 5,000, 10,000, 20,000, 50,000, and 100,000 Guaraníes. These banknotes bear the images of various prominent historical and cultural figures, landmarks, and symbols of Paraguay.
The Paraguayan Monetary Unit, like any other currency, performs several functions, including serving as a medium of exchange, unit of account, and store of value. It facilitates the exchange of goods and services, allows for the pricing of products, and serves as a means to hold and accumulate wealth.
The Paraguayan government, through its central bank, manages the supply and circulation of the Paraguayan Monetary Unit. This involves controlling inflation, maintaining exchange rate stability, and ensuring the currency's credibility in both domestic and international markets. These monetary policies are implemented to promote economic stability, encourage investment, and foster growth within the country.
