PYG (Paraguay Guarani)

DEFINITION of 'PYG (Paraguay Guarani)'

The currency abbreviation or currency symbol for the Paraguay guaraní (PYG), the currency of Paraguay. The Paraguay guaraní is made up of 100 céntimos and is often represented by a symbol that looks like the capital Latin letter "G" with a diagonal slash through the center of it. The "guaraní" is named after the Guaraní people - an indigenous group of people in South America, living in what is now Paraguay. Rampant inflation has devalued the céntimo to the point where it is no longer used.

BREAKING DOWN 'PYG (Paraguay Guarani)'

The Paraguay guaraní replaced the peso at a rate of 1 guaraní to 100 pesos in 1943. The currency was allowed to float freely until 1960, when it was pegged to the U.S. dollar. The peg was in place from 1982 to 1990. In 1990, this peg was removed and another peg was used from 1990 until 1998 to help reduce inflation. Since the removal of the peg in 1998, the currency has consistently dropped in value because of inflation. Political corruption is thought to be the main force behind the runaway inflation.

RELATED TERMS
  1. PYG

    In currencies, this is the abbreviation for the Paraguay Guarani.
  2. Currency Peg

    A country or government's exchange-rate policy of pegging the ...
  3. Crawling Peg

    A system of exchange rate adjustment in which a currency with ...
  4. Currency Board

    A monetary authority that makes decisions about the valuation ...
  5. JPY (Japanese Yen)

    The currency abbreviation or the currency symbol for the Japanese ...
  6. Price/Earnings To Growth - PEG ...

    Price/Earnings to Growth (PEG) is a stock's price to earnings ...
Related Articles
  1. Markets

    How Does a Currency Peg Work?

    When a government initiates a currency peg, it pegs its currency’s value to that of another country.
  2. Trading

    Currency Exchange: Floating Rate Vs. Fixed Rate

    Baffled by exchange rates? Wonder why some currencies fluctuate while others are pegged? This article has the answers.
  3. Trading

    Top Exchange Rates Pegged To The U.S. Dollar

    From the end of World War II until around 1971, all countries in the IMF pegged their currencies to the U.S. dollar. Today, many still do.
  4. Trading

    How Are International Exchange Rates Set?

    International exchange rates show how much one unit of a currency can be exchanged for another currency.
  5. Trading

    The Pros And Cons Of A Pegged Exchange Rate

    A pegged exchange rate occurs when one country fixes its currency’s value to the value of another country’s currency. But it has both pros and cons.
  6. Trading

    The Pros And Cons Of A Pegged Exchange Rate

    A pegged currency can give a country many advantages, but these advantages come at a price.
  7. Markets

    Why Countries Keep Reserve Currency

    Central banks and financial institutions hold large amounts of foreign money as their reserve currency.
  8. Investing

    PEG Ratio Nails Down Value Stocks

    Learn how this simple calculation can help you determine a stock's earnings potential.
  9. Trading

    Keeping Securities Clear With Ticker Symbols

    A ticker symbol is a group of characters that represent a specific, publicly traded security that’s listed on an exchange.
  10. Trading

    Simulator How-To Guide: Ticker Symbol Look Up

    As you noticed while you were buying shares of Wal-Mart, all brokerages (simulated or not) require you to input the company's stock symbol to place any trade. In fact, all stock exchanges employ ...
RELATED FAQS
  1. How are international exchange rates set?

    International currency exchange rates display how much one unit of a currency can be exchanged for another currency. Currency ... Read Answer >>
  2. When computing the PEG ratio for a stock, how is a company's earnings growth rate ...

    Remember that the price/earnings to growth ratio (PEG ratio) is simply a given stock's price/earnings ratio (P/E ratio) divided ... Read Answer >>
  3. Why do some stock symbols have three letters while others have four? What is the ...

    Stocks found on the New York and American Stock Exchange will normally have symbols with three letters or fewer. On the other ... Read Answer >>
  4. Why is the PEG (price to earnings growth) ratio something I should be looking at ...

    Understand the price/earnings to growth ratio and why it may be a better stock valuation tool than the more widely used price-earnings ... Read Answer >>
  5. Over what duration should I be examining a given stock's PEG (price to earnings growth) ...

    Learn how the PEG ratio provides an assessment of a stock's current price based on its trailing or projected earnings growth ... Read Answer >>
  6. Under a pegged exchange rate system which of the following measures can be undertaken ...

    The correct answer is: a) By reducing the level of real interest rates at home, foreign and domestic investors will invest ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center