For the exercise of its functions, the Central Bank of Paraguay shall have at its disposal its own resources and the cooperation of all institutions dependent on the State. Banks, financial institutions and other credit institutions subject to the General Law on Banks and Other Financial Institutions, as well as those established by special laws, and generally any other person or private or official entity, national or foreign that collects or manages resources from the public or makes financial intermediaries, must hold deposits as legal reserves; whose share, composition and sanction in the event of non-compliance shall be determined by the Central Bank of Paraguay, which shall not exceed 40 per cent (forty per cent) of its deposits and financial operations. c) dismissal with disqualification for a period of 3 (three) to 10 (ten) years for the exercise of the positions of president, director, legal representative, manager, accountant, fiduciary, internal and / or external auditor and all persons who occupy positions of management, administration or supervision of companies subject to the supervision of the Central Bank of Paraguay; and since January 2011, coins issued in 2006 and clubs of 1000 and clubs of 50,000 with the image of the Paraguayan soldier are no longer valid. The Board of Directors of the Central Bank of Paraguay will determine which services are associated with the transfer of supervised entities and have an impact on operational risk. The essential conditions and requirements are governed by a general decision of the Board of Directors of the Central Bank of Paraguay, taking into account the grounds of legality, timeliness and expediency. Other specific decisions of the Central Bank of Paraguay that do not fall within the scope of an administrative investigation are subject to the same deadlines for filing complaints. (7) To establish, abolish, modify or separate administrative units and posts, to determine their functions and interrelationships, and to assign them a rank or hierarchy within the legal and organizational structure of the Central Bank of Paraguay; (g) To act as economic and financial adviser to the Government and, as such, to participate in any legal and regulatory changes that may affect the exercise of its functions and to warn against provisions that may affect monetary stability; The Central Bank of Paraguay may grant the Government short-term advances in national currency on the estimated tax credits for the year in question to finance the estimated public expenditure. The total amount of advances may not exceed 10% (ten per cent) of the estimated tax revenue for that year. In 2013, a project appeared that contradicted the elimination of zeros for guarani; continue with the same current currency and print notes of 200,000 and even 500,000 guarantees. The objective of this project would be to reduce the amount of paper money in circulation for certain transactions.
The Central Bank of Paraguay exchanges, on sight and free of charge, the banknotes and coins of each denomination it issues for other banknotes and coins of the same value. It may delegate these tasks to entities in the financial system. In the first years of the life of the Guarani, there were cents and notes up to 1000 guaranies, which were the most precious. The dollar traded at 120 guarani per unit in the 60s until the mid-80s, when cents were no longer used due to inflation that would occur in the following years. In the last half of the decade of the 80s, there was a peak of inflation, in which the guaraní went from 120 guaraníes per dollar to more than 1000 guaraníes per dollar. To that end, it is necessary that there be reciprocity and that these authorities be subject to the obligation of secrecy under conditions comparable to those laid down in Paraguayan legislation. All Paraguayans who meet the requirements of this law have the right to join the staff of the Central Bank of Paraguay, without any condition other than aptitude. For foreign currency loans, minimum reserves may be required. In July 2017, the number of banknotes in circulation was 206 million, while coins amounted to 498 million units, for a total of 704 million units, the equivalent of 10.5 billion G ($1896 million) between banknotes and coins. [4] The most circulating banknote is the Gs.100,000 with 85.4 million units.
The most circulating currency is the Gs.100 with 159.9 million units. [5] The coins currently in circulation are 500 and 1000 guarantees. The banknotes are 2000, 5000, 10,000, 20,000, 50,000 and 100,000 guarantees. (3) maintain effective own funds for a period of at least 6 (six) months, which are below the minimum necessary for the establishment of the corresponding unit or which do not amount to 80 % (eighty per cent) of the own funds which they are required to maintain under the solvency ratio established by the general law of banks and other financial institutions; (b) the issue of notes and coins which are legal tender with exclusive authority, managing and regulating their circulation, in accordance with the measures referred to in the preceding paragraph; In the event of the replacement of banknotes that are not fit for circulation due to circumstances other than their normal deterioration, the Central Bank of Paraguay may require payment of the replacement cost. Foreign currency deposits with banks and other authorised credit institutions are also subject to minimum reserves. Since 1952, with the establishment of the Central Bank of Paraguay, by Legislative Decree No. 18 of 25 March 1952, the issuance of banknotes has already been carried out by the Central Bank of Paraguay itself. Currently, the questions are being asked under Act No. 489/95, the Organic Law of the Central Bank of Paraguay, of 29 June 1995. 10) Propose to the Board of Directors the granting and revocation of authorizations of the entities it supervises in accordance with the criteria of legality, speed and convenience.