:quality(70)/cloudfront-us-east-1.images.arcpublishing.com/lanacionpy/I3OYWPZA6ZACNKNWBABRSBDFUE.jpg?fit=%2C&ssl=1)
Despite the fact that the Central Bank of Paraguay (BCP) began to put a brake on the dynamism of credit in the local market, mainly in order to control the inflation trend, through its monetary policy, the level of expansion of the loans continues to grow.
This is how the Financial Indicators report, presented this morning by the BCP, reveals, where it mentions that total credit in the month of March 2022 increased by 14.47% in year-on-year terms. This behavior is explained by the expansion of credit in national currency (MN), which was 9.85% year-on-year, and of credits in foreign currency (ME), which increased 10.73% in the same period.
For their part, total private deposits exhibited a year-on-year growth of 7.32%. Deposits in guaraníes grew by 1.47%, while deposits in dollars expanded by 3.30%. The report indicates that, in the month of March 2022, the dynamics of both credit and deposits in foreign currency expressed in local currency was influenced by a significant exchange effect, considering that the exchange rate registered an interannual variation of 9, 8% in the indicated period.
It may interest you: Uncertainty grows in the local economic scenario
Bernardo Rojas, BCP technicians, during a press conference explained that both loans and deposits still have a dynamic behavior, although a significant slowdown has been observed in recent months, excluding the exchange rate effect.
“However, we believe that the current dynamic responds to the growth expected for the economy, in nominal terms. Let us remember that the revised estimates for GDP this year point to quite low growth, relative to what was expected last December”, he noted.
