As the US dollar continues to rise against the local guaraní in Paraguay, businesses are expressing their concerns about the potential impact on year-ending sales. The Association of Importers and Traders of Paraguay (Asimcopar) is worried that this trend could affect the upcoming Christmas season, which heavily relies on imported items.
- Impact on Prices: The increase in the dollar directly affects products sold by multistores, leading to higher prices for consumers. This rise in exchange rates also adds to the logistic costs of transporting imported goods, exacerbated by the reduced water levels of the Paraguay River.
- Christmas Season: With the holiday season approaching, the fear is that these price hikes will impact consumer spending during a crucial period. Asimcopar spokesman Eugenio Caje emphasized the need for actions to prevent further escalation of the US dollar’s value.
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President’s Impact: Under President Santiago Peña’s leadership, Asimcopar has seen an average increase in sales, particularly in clothing, footwear, and bazaar products. This positive trend highlights the potential for growth even in challenging economic conditions.
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Collaborative Efforts: Asimcopar has engaged in constructive dialogues to address concerns and advocate for changes in legislation, such as the Baggage Theft Law. These efforts demonstrate a commitment to improving the business environment through collaboration with institutional actors.
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Economic Adjustments: Recent initiatives by the Economy and Finance Ministry have led to increased tax collection, improved public accounts, and strengthened measures against tax evasion. These improvements are vital for ensuring a stable economic foundation in the face of currency fluctuations.
In response to these challenges, the Paraguayan Central Bank (BCP) has acknowledged the moderate depreciation of the guaraní against the US dollar. Despite the current global trend affecting regional currencies, BCP Research Manager Sebastián Diz reassured that the depreciation in Paraguay remains relatively controlled compared to other countries.
Overall, the concerns raised by businesses in Paraguay underscore the need for proactive measures to stabilize the exchange rate and mitigate the impact on consumer spending. Collaborative efforts between businesses, government institutions, and regulatory bodies can help address these challenges and foster a more resilient economy in the face of currency fluctuations. It is essential for all stakeholders to work together to ensure economic stability and support sustainable growth in the midst of uncertain market conditions.
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