Let's talk money in Paraguay. Specifically, the Paraguayan Guarani (PYG), which might just confuse you at first with all those zeros. Last month I tried paying with a 100,000 bill for a street empanada and watched the vendor sigh as he counted change for five minutes. That's Paraguay currency life.
What Actually is Paraguay's Money?
Paraguay country currency operates completely differently than what you're used to. Forget dollars or euros – here it's strictly Paraguayan Guarani. Created in 1943, it replaced the peso when inflation got wild. There are no coins worth using except for parking meters (seriously, I've got a jar of useless 50-guani coins). Bills start at 2,000 PYG and go up to a mind-bending 100,000 PYG note.
Fun fact: Locals drop the last three zeros when speaking. If something costs 50,000 PYG? They'll say "cincuenta mil" but mean 50 in practical terms. Mess this up and you'll massively overpay.
Guarani Bills You'll Actually Use
| Bill Value | Color | Who's On It | Real-World Buying Power |
|---|---|---|---|
| 2,000 PYG | Blue | Adela and Celsa Speratti | 1 bottle of water |
| 5,000 PYG | Orange | Carlos Antonio López | 2 bus rides + snack |
| 10,000 PYG | Green | José Gaspar Rodríguez | Lunch at local café |
| 20,000 PYG | Purple | Paraguayan women | Dinner for two |
| 50,000 PYG | Red | Agustín Pío Barrios | Hotel night budget stay |
| 100,000 PYG | Brown | San Roque González | Weekly groceries |
Handling Money Like a Local
You can't avoid cash here. Even in Asunción's fancy restaurants, I've had credit cards declined because "el sistema está caído" (system's down). Always carry smaller bills – breaking 100,000 PYG for coffee is like asking someone to solve a math problem.
My Personal Cash Strategy: Withdraw 200,000-300,000 PYG from ATMs (Banco Continental has lowest fees). Immediately separate into:
- 50,000 PYG bills for hotels/taxis
- 20,000 PYG for restaurants
- Stash of 5,000/10,000 for markets
Keep emergency USD in case ATMs fail (happens weekly)
The Exchange Rate Game
Current rate hovers around 1 USD = 7,300 PYG (as of late 2023). But rates vary wildly:
| Exchange Method | Rate for $100 USD | Fees | My Rating |
|---|---|---|---|
| Airport exchange | 685,000 PYG | 12% commission | ⭐ Avoid unless desperate |
| Downtown cambios | 715,000 PYG | 3-5% commission | ⭐⭐⭐ Best rates |
| ATMs | 700,000 PYG | $5-7 bank fee | ⭐⭐ Most convenient |
| Hotels | 670,000 PYG | 8-10% hidden fee | ⭐ Only for emergencies |
Watch for "cambio callejero" (street money changers). Got scammed twice: once with out-of-circulation notes, once with fake USD. Stick to licensed casas de cambio like Gales Cambios or MaxiCambios.
Spending and Saving Guarani
Paraguay country currency stretches far if you know where to go. But inflation's hit hard – prices jumped 20% since my first visit in 2020. Here's what costs what:
- Cheapest meal: 10,000 PYG (sopa paraguaya + empanada)
- Decent hotel: 120,000 PYG/night
- Long bus ride: 30,000 PYG (Asunción to Ciudad del Este)
- Tereré (local drink): 5,000 PYG in markets
Mercado 4 in Asunción is where your guarani works hardest. Got lost there once bargaining for handicrafts. Started at 150,000 PYG, walked out paying 60,000. Patience pays.
Cards? Dollars? What Works
USD are accepted near borders (Brazil/Argentina) but rates suck. I once paid $20 for a 100,000 PYG meal – effectively lost 30%. Cards work at:
- Supermarkets (except discount chains)
- Upscale restaurants
- Hotel chains
But always ask: "¿Acepta tarjeta?" before ordering. Learned this after racking up a 180,000 PYG steak dinner with no cash backup.
Paraguay Currency History Crash Course
Why does Paraguay country currency have so many zeros? Blame the 1940s-50s inflation. When Guarani launched in 1943, 1 USD = 3 PYG. By 2023? 1 USD = 7,300 PYG. Key moments:
- 1943: Guarani replaces Peso (1 Guarani = 100 Pesos)
- 1960: First major devaluation
- 1989: Stroessner regime collapse → hyperinflation
- 2012: 50,000 PYG bill introduced
- 2020: Polymer notes debut (finally durable!)
The government keeps debating knocking zeros off. But locals tell me they've heard this for decades. Don't hold your breath.
Practical Paraguay Currency FAQs
Can I use credit cards everywhere?
Heck no. Outside Asunción and tourist zones, cash is king. Even in shopping malls, I've seen card machines "temporarily broken." Always carry 200,000 PYG backup cash.
Should I bring USD or Euros?
USD is better for emergencies but exchanging EUR is harder. If bringing cash, only 2013+ series USD bills accepted. Got rejected for a 2006 note once.
Are ATMs reliable?
Mostly. Banco Continental and Vision Banco are best. But:
- Many ATM limits are 1,000,000 PYG/day
- Sunday nights = empty ATMs
- Skimming happens – use bank lobby ATMs
How much cash should I carry daily?
Depends:
- Budget traveler: 150,000 PYG
- Mid-range: 300,000 PYG
- Luxury: 500,000+ PYG
Split between pockets/purse. Petty theft happens.
Can I exchange leftover Guarani?
Hard outside Paraguay. Brazilian border towns sometimes take it at 30% loss. Better to:
1. Tip hotel staff
2. Buy last-minute souvenirs
3. Keep as quirky souvenir
I've got 2,000 PYG notes as bookmarks.
Counterfeit Notes: How to Spot Fakes
Fake 20,000 and 50,000 bills circulate. Police showed me these checks:
| Check Method | Real Note | Fake Note |
|---|---|---|
| Watermark | Clear face image | Blurry or missing |
| Security thread | Embedded silver line | Printed on surface |
| Texture | Rough, fibrous feel | Smooth like printer paper |
| UV light | Glowing map patterns | No glow or partial glow |
Taxi drivers are notorious for passing fakes at night. Always check bills under light before accepting.
Digital Payments in Paraguay
Slowly catching on! Since 2022, I've seen more QR payments. Top options:
- Tigo Money: Mobile wallet (75% coverage)
- Billetera Personal: Bank transfers
- Ueno: Local Venmo-like app
But outside cities? Forget it. My rural homestay only took eggs as payment for laundry. True story.
Final Paraguay Currency Tips
After three trips handling Paraguayan Guarani, here's my survival kit:
- Never accept torn bills - many places refuse them
- Small bills for buses (exact change required)
- Learn these phrases:
"¿Cuánto cuesta?" (How much?)
"¿Tiene vuelto?" (Do you have change?)
"Está muy caro" (It's too expensive) - Exchange rates improve when you're farther from Argentina/Brazil borders
- Better to carry 10x 10,000 bills than one 100,000 note
Paraguay country currency isn't just money – it's a crash course in local life. Those zeros teach you patience. The cash-only culture forces connection. And bargaining for handicrafts? That's where real memories are made. Just watch out for counterfeit notes.
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