IMF Staff Country Reports

Paraguay: Selected Issues

Publication Date:

August 2, 2011

Electronic Access:

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Summary:

Paraguay’s economy recently experienced particularly large output swings. Economic policies will play a critical role in raising investment by making sure that macroeconomic stability is maintained. The spillovers from the agricultural sector to the rest of the economy are limited. The high level of bank excess reserves in Paraguay reflects a mixture of precautionary and involuntary factors. Large bank excess reserves weaken the monetary transmission channel, and cause inefficiency costs. Bank reforms should be undertaken to preserve financial and macroeconomic stability.

Series:

Country Report No. 2011/239

Subject:

Agricultural sector Bank deposits Banking Central bank policy rate Economic sectors Financial services Monetary policy Output gap Production Reserve requirements

Notes:

Also Available in Spanish