Recent currency performance showed clear differences between Paraguay and Venezuela.

May 2026 Exchange Rate Update

The Paraguayan guarani strengthened as higher interest rates attracted investment, while lower inflation, better access to foreign financing, and a smaller current account deficit improved confidence in the economy. Favorable global conditions and demand for higher returns also supported the currency.

In contrast, the Venezuelan bolivar continued to weaken due to high inflation and low confidence, leading many people to rely on U.S. dollars instead. Although stronger oil exports offer some hope, weak economic conditions and low trust in policy continue to weigh on the currency.

Which Currencies Are Appreciating or Depreciating?

Why Is the Paraguayan Guarani Strengthening?

The Paraguayan guarani’s recent appreciation was supported by relatively high interest rates, which made the currency more attractive compared to others and encouraged investment. This increased demand helped strengthen the guarani.

Lower inflation also boosted confidence in the central bank’s ability to maintain economic stability. In addition, better access to foreign financing and a smaller current account deficit reduced concerns about Paraguay’s financial position. Favorable global conditions and investor demand for higher returns also contributed to the guarani’s rise.

Why Is the Venezuelan Bolivar Depreciating?

The Venezuelan bolivar continues to face significant downward pressure due to several factors, including high inflation and ongoing depreciation. As confidence in the currency has weakened, many Venezuelans have increasingly relied on more stable foreign currencies, particularly the U.S. dollar, for everyday transactions.

Although the currency’s overall performance remains challenging, some encouraging developments, such as improvements in the oil export market, may support the bolivar going forward. However, this remains uncertain, as the negative pressures still far outweigh the potential positives.

If currency movements are raising questions for your global mobility team, AIRINC can help you understand what they may mean for your program.

Back-to-Basics COLA and Exchange Rate Webinar

At AIRINC, we hear many of the same questions from mobility teams and their assignees: “Why has my COLA gone down?” “How is inflation affecting my allowance?” “What role do exchange rates play?” These are important questions and they deserve clear, data-driven answers.

Because we work every day with the data every day, we understand how challenging it can be to communicate these changes with confidence. That’s exactly why we record all our Back-to-Basics webinars for you to watch again. Our goal is to demystify the mechanics behind COLA, explain how economic trends shape allowances, and give mobility professionals the knowledge they need to support their assignees.

Watch again here

Mobility Outlook Survey 2026

Want to see how your mobility programme compares with broader market trends? Participate in AIRINC’s 2026 Mobility Outlook Survey to help shape this year’s findings and receive a priority copy of the report when it is published. Closing end of June.