Abstract
IMF Country Report No. 22/178
Copyright Page
IMF Country Report No. 22/178
PARAGUAY
SELECTED ISSUES
June 2022
This paper on Paraguay was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on May 27, 2022.
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Title page
PARAGUAY
SELECTED ISSUES
May 27, 2022
Approved By
Western Hemisphere Department
Prepared by Manuk Ghazanchyan, Mauricio Vargas (IMF), Gustavo Canavire-Bacarreza (World Bank) and Fernando Rios-Avila (The Levy Economics Institute of Bard College)
Contents
FOREIGN EXCHANGE INTERVENTIONS IN PARAGUAY AND THEIR ROLE IN THE MONETARY POLICY FRAMEWORK
A. Background
B. Drivers of the Exchange Rate in Paraguay and the Exchange Rate Flexibility
C. Foreign Exchange Interventions
D. Inflation Targeting and Foreign Exchange Interventions
E. How Does Volatility of Economic Variables in Paraguay Compare with Other Countries?
F. Conclusions
References
APPENDICES
I. Daily Exchange Rate Volatility
II. Output and Inflation Volatilities: Paraguay Versus Other EMEs
III. Overview Of Interventions in Paraguay Until the IT Regime in 2013
EFFECTIVENESS OF SOCIAL ASSISTANCE PROGRAMS IN PARAGUAY DURING COVID-19 TIMES
A. Some Stylized Facts
B. Social Programs in Paraguay in Response to COVID-19
C. Remarks and Policy Implications