The guaraní is the official currency of Paraguay since 1994 and it is divided into 100 cents.
Origins and history of the guaraní
In 1811 the currencies commonly used in Paraguay were Spanish coins such as the peso, the real or the cuartillo, minted in gold and silver. During the first years of independence, it was hard for the country to mint its own coins, so this is why currencies from other countries were used, just marked with a little stamp.
When Carlos Antonio López arrived to the power, they realized it was necessary to have a currency of their own. The law of 24th November 1842 provided the minting of coins up 30,000 pesos.
On the 1st March 1847, Carlos Antonio López issued a provision creating paper money and he authorised by decree the issue through the national treasury, to the total value of two hundred thousand pesos. This issue was five values: first class, equaling one peso; second class, three pesos; third class, five pesos; fourth class, nine pesos and fifth class, twenty pesos.
Under the government of Higinio Morínigo a monetary reform was carried out, bringing stability to the country and encouraging savings. There was only one issuing bank, the Bank of the Republic of Paraguay, currently the Central Bank of Paraguay, created by Law 5130 of the 8th September 1944. guaraníes are in force since 1944, although the first pesos which were circulating had been resealed.
In 1963 the notes changed their look and denominations of 5,000 and 10,000 guaraníes were introduced. In 1990 notes of 50,000 and 100,000 were launched.
In 1995 brass coins of 50 and 100 guaraníes were introduced and in 1997, of the same material, 10 and 100 coins were issued. In 2000 the currencies of 500 guaraníes appeared and in 2007 those of 1,000.
The latest change was the incorporation of polymer banknotes in 2,000 notes, running from 10th November 2009.
Current yen coins and banknotes
Today we have currencies in circulation of 5, 10 and 50 cents, which would become 1, 2, 5, 10, 20, 50 and 100 new guaraníes, respectively.
Regarding banknotes, those in circulation are of 2,000, 5,000, 10,000, 20,000, 50,000 and 100,000 guaraníes.
Did you know?
- The gold coin of 10,000 guaraníes, launched in 1968 and showing the face of Stroessner is one of the most expensive coins.
- Between 1844 and 1872 there were in Paraguay many foreign coins in gold and silver cut into pieces, a work carried out by merchants in order to pay small amounts or for values smaller than a real.