The Central Bank of Paraguay said its president, Carlos Carvallo Spalding, and other officials met analysts from Standard & Poor's as part of the country's annual sovereign credit rating assessment. In the meeting, the central bank emphasized Paraguay's economic resilience to external shocks, its recent position as a regional growth leader, and the support from rising foreign direct investment, structural reforms and planned private sector investment. It also stressed that monetary policy has remained effective and credible in keeping inflation under control. Officials recalled that the Central Bank of Paraguay's board lowered the inflation target in December 2024 to 3.5 percent from 4 percent to reinforce its commitment to price stability. The discussion also focused on the financial system's capacity to withstand domestic and external shocks and on the country's strong external position, supported by high net international reserves relative to gross domestic product. The central bank noted that Paraguay holds investment grade from Moody's at Baa3 and remains one notch below that level with S&P Global Ratings and Fitch.
Central Bank of Paraguay2025-10-29
Central Bank of Paraguay highlights economic resilience and monetary policy credibility in S&P rating review meeting
The Central Bank of Paraguay said it used a meeting with S&P analysts during the country's annual rating review to underline economic resilience, stronger medium-term growth drivers and the credibility of monetary policy. It also pointed to the December 2024 cut in the inflation target to 3.5 percent from 4 percent, the financial system's shock-absorption capacity and strong net international reserves. Paraguay holds Moody's investment grade rating and is one notch below that level with S&P and Fitch.