Forex trading is fully legal in Paraguay, with the country maintaining an open approach to foreign exchange activities and investment. The Paraguayan government actively encourages private foreign investment and has established comprehensive legal frameworks to support financial market operations (1). Paraguay's regulatory system permits unrestricted currency conversion and transfer, with minimal reporting requirements that only apply to transactions exceeding USD 10,000.
The Central Bank of Paraguay (Banco Central del Paraguay - BCP) serves as the country's highest monetary authority and governing body for financial and economic matters, overseeing the regulation of banks, finance companies, and other credit entities through its Banking Superintendency (1). Paraguay's financial regulatory framework has been developed in accordance with international standards, including compliance with Basel Core Principles for Effective Banking Supervision, which were first assessed by the International Monetary Fund in 2005.
"No restrictions exist in Paraguay on the conversion or transfer of foreign currency, apart from bank reporting requirements for transactions in excess of USD 10,000."
Paraguay's flexible exchange rate system allows the national currency to fluctuate according to foreign exchange market mechanisms, providing traders with market-driven pricing (1). The country's commitment to financial transparency has been strengthened through recent anti-money laundering legislation, with President Mario Abdo Benítez signing twelve comprehensive anti-money laundering laws in December 2019 to comply with international standards recommended by the Financial Action Task Force against Money Laundering in Latin America (GAFILAT). Additionally, Paraguay's banking system, which includes 17 banks with approximately USD 21.5 billion in assets, operates under the supervision of the Central Bank of Paraguay, ensuring regulatory oversight of financial activities including foreign exchange operations (2).
Foreign investors and traders benefit from Paraguay's Investment Incentive Law (60/90), which guarantees full repatriation of capital and profits while providing various tax incentives. The country's legal framework ensures equal treatment for foreign investors and permits international arbitration for dispute resolution, creating a secure environment for forex trading activities. Paraguay's membership in international financial organizations, including the International Monetary Fund since 1945, further reinforces its commitment to maintaining transparent and regulated financial markets that support legitimate forex trading operations (1)(2).
Source:
https://www.state.gov/reports/2020-investment-climate-statements/paraguay/
https://www.imf.org/en/Publications/CR/Issues/2022/07/26/Paraguay-Technical-Assistance-Report-Bank-Resolution-Framework-and-the-Deposit-Guarantee-521332
Last updated: 31-05-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
