PARAGUAY: OPEN FOR BUSINESS

Today’s exchange rate is 1 US Dollar =  5,247.92 Paraguay Guarani, or put the other way around 1 Paraguay Guarani (PYG) = 0.0001906 US Dollar (USD) .

Where and how can you exchange your tourist dollars in Asuncion? First of all, you should be aware that in Paraguay  US $100 bills with serials starting in CB and D are not accepted. This is a National Bank rule, apparently. Ostensibly, it is to prevent possible fake $100 bills in circulation. But did you ever think it kind of weird that only Paraguay would have this problem, in the whole world? I think it has more to do with the quasi-exchange-controls in place on the dollar. You see, each different series is issued by a different bank within the Federal Reserve system.  Many other countries have controls on USD bills, but the CB and D controls are unique to Paraguay.

Anyway, let’s say you have some Euros, Swiss francs, Reals or pesos, or dollars not affected by the troubles. You can exchange money in the Microcentro.  The exchange rate offered in downtown Asunción (the “centro”) tends to be higher than in Villa Morra and other areas. Most of the “casas de cambio” downtown are located along Calle Palma going 2-3 blocks in either direction from the Panteón de los Heroes. A tip: Financieras usually have better rates then normal banks or exchange houses. There is a Financiera Brios in Shopping Villa Morra and there a couple of financieras along Palma. If you are changing a large quantity of money or are a regular, don’t hesitate to ask for a better rate.

Changing money on the street is not recommended. I have heard of several people being ripped off this way in the confusion of being surrounded by shouting money-changers all waving their arms with calculators.

ATM machines, of course, are a good option. A few years ago there was a daily limit of $600 for withdrawals in Paraguay. Last time I was there at the ABN-Amro in downtown I was able to withdraw $1000 in one single ATM transaction, so that restriction appears to have been lifted, at least at some banks. Of course, to make large ATM withdrawals you will need to check that your card-issuer will approve the transactions. Many tourists get stuck without money because banks in places like USA and UK will automatically block ATM cards if they are used frequently in out-of-the-way places like Paraguay. The solution is to use an offshore bank that is used to clients who travel. Uruguay has some good offshore banks that are also knowledgeable about Paraguay.

Once, I was with a client who wanted to exchange a lot of American Express Travelers Cheques to pay for a small real estate purchase. Unfortunately, the signature on the cheques differed from the signature on his passport. (He had signed the cheques with initials, but had written out his name in full on the passport) We tried many banks and casas de cambio but none would exchange the cheques. Finally, the solution was to go to the American Express travel office. They do not cash cheques (they do not handle cash, presumably for security reasons) but they were able to exchange the cheques for new blank cheques that the client could sign and exchange. He paid at least 5% fee for the exchange, plus all the hassle. So don’t waste time on travelers cheques in Paraguay. Cash is king!