The local currency is the guarani (PYG), but the US dollar also circulates for large purchases and real estate. Handling money in Paraguay is straightforward once you know the right reflexes, and that avoids losing several percentage points on each exchange transaction, something that adds up quickly on a multi-week stay.
At a Glance
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Key points about money in Paraguay
- •Official currency: the guarani (PYG). The US dollar is accepted in hotels and large transactions
- •Indicative rate: 1 EUR ~ 7,900-8,600 PYG, check on XE on your departure day
- •Bank cards accepted in the city, scarce in rural areas and the Chaco
- •Scam #1: dynamic currency conversion (DCC), always refuse it and pay in PYG
- •Best rate: exchange offices in Asuncion, not at airports or before departure
Guarani, Dollars, Cards: What You Need to Know
The guarani (PYG) has been Paraguay's official currency since 1943, when it replaced the Paraguayan peso at a rate of 1 to 100. Today, banknotes circulate in denominations of 2,000, 5,000, 10,000, 20,000, 50,000 and 100,000 Gs, and coins of 50, 100, 500 and 1,000 Gs. The exchange rate against the euro fluctuates continuously under the influence of regional markets and the price of soybeans, the country's main export. Check the official rate published by the Central Bank of Paraguay on the day of your departure, and compare it with the rates offered at the destination.
US dollars are accepted in hotels, large real estate transactions and some tourist businesses, but you will need guaranies for daily life: buses, markets, small restaurants, taxis. Bank cards (Visa, Mastercard) are accepted in hotels, restaurants and supermarkets in large cities, more rarely in rural areas or the Chaco, where cash remains king. Always plan a cash reserve in guaranies to cover several days of autonomy if you move away from urban centres.
Where to Exchange at the Best Rate
The question of the best place to exchange money appears in almost every message I receive. The answer is simple: the exchange offices in downtown Asuncion, particularly those on Calle Estrella and the area around Plaza Uruguaya, offer the most competitive rates. These specialised businesses live on their reputation and transaction volume, which incentivises them to display rates close to the interbank rate. The right reflex: compare 2 to 3 places before exchanging a large sum, as the difference between two exchange offices 50 metres apart can reach 1-2%.
| Comparison of exchange options | |
|---|---|
| Exchange offices in Asuncion (centre) | Best rate for cash, compare 2-3 places |
| Local ATMs | Rate close to interbank, but 3-5 USD fixed fee per withdrawal |
| Silvio Pettirossi airport | Clearly less advantageous rate, avoid except in emergency |
| Banks | Exchange possible but slower, no rate advantage |
| Hotels | Emergency exchange at unfavourable rate |
ATMs are common in Asuncion and large cities, with fixed fees of 3 to 5 dollars per withdrawal. To minimise the impact of these fixed fees, prioritise less frequent but larger withdrawals: withdrawing the equivalent of 300 EUR once a week costs less than six withdrawals of 50 EUR. Fee-free cards for use abroad (Revolut, Wise, Boursorama) avoid the standard 2-3% exchange fee, representing a saving of 20 to 30 EUR for every 1,000 EUR spent.
Indicative Budgets and Scams to Avoid
Here are the orders of magnitude for a traveller's budget in Paraguay, expressed in guaranies so they are readable regardless of the day's exchange rate. These figures are cross-checked with cost of living data published by Budget Your Trip and Numbeo. A simple meal at a local restaurant costs 15,000 to 25,000 PYG, an urban bus trip 3,000 to 5,000 PYG, a night in budget accommodation 80,000 to 150,000 PYG.
- 1Street exchange: always avoid it, risk of counterfeit notes or deliberately miscounted change
- 2Dynamic currency conversion (DCC): when a terminal offers to pay in euros, always refuse it and choose PYG, the DCC rate is almost always worse than your bank's
- 3Isolated or unofficial-looking ATMs: prioritise ATMs located inside bank branches or shopping centres
- 4Low-value worn or torn notes given in change, difficult to reuse
- 5Always keep some cash in US dollars as a reserve, accepted almost everywhere if you have card problems
The question of tipping and haggling deserves a specific mention. Unlike other Latin American countries, Paraguay does not have a culture of systematic tipping: leaving 5 to 10% in a restaurant frequented by tourists is appreciated but not expected, and nobody will look down on you if you don't. In markets, haggling is possible but much more moderate than in Andean countries: aggressive negotiation is frowned upon. A small gesture of 5 to 10% on an already displayed price is enough to show goodwill without being intrusive.
Last updated:
Sources
- Budget Your Trip: Paraguay Travel Costs (2024)
- XE: EUR/PYG Converter (2025)
- Central Bank of Paraguay: Foreign Currency Exchange Rates (official rate) (2025)
- DGCCRF: Payment abroad: beware of dynamic currency conversion (2024)
- Wise: Understanding and avoiding dynamic currency conversion (DCC) (2024)
- Numbeo: Cost of Living in Paraguay (2025)
- France Diplomatie: Travel Advice Paraguay (2025)
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