Paraguay’s Capital Markets in 2026: A Quick-Start Guide for Foreign Investors
TL;DR
Paraguay is upgrading its market plumbing to align with international standards. For foreign investors, the practical playbook is: pick your access route (local broker vs. partner network vs. fund), prepare KYC now, and line up custody/FX workflows so you’re ready when connectivity deepens.
Why now
Paraguay has combined macro stability with a relatively under-researched market. With market infrastructure being modernized and connectivity improving, the door is opening for global investors who value diversification and early-mover exposure.
What you can invest in (high level)
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Government & quasi-sovereign bonds (PYG and USD issues exist).
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Corporate bonds from banks, utilities, and diversified issuers.
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Equities (smaller float; liquidity varies by name).
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Local mutual funds/FCIs with different risk profiles.
(Availability, liquidity and eligibility depend on your broker and residency status.)
Access routes (pick one to start)
Local broker account
- Open an account with a licensed Paraguayan broker.
Pros: direct market access, local deal flow.
Cons: more paperwork for non-residents; language/time-zone considerations.
- Partner network via your existing broker/custodian
Some global/regional brokers route to Paraguay through local partners.
Pros: single relationship; consolidated reporting.
Cons: limited instrument shelf; fees can be higher.
- Fund route
Allocate to local funds or regional strategies that include Paraguayan assets.
Pros: simple onboarding; professional management.
Cons: less control over specific securities; management fees.
Tip: Start with route #2 or #3 to learn the market; add a direct local account once you’re serious about size and specificity.
Custody, settlement & FX (what to ask providers)
- Settlement standards: confirm cycles (e.g., T+1/T+2) by instrument.
- Custody: who is the underlying custodian? How are corporate actions handled?
- FX: account funding in USD vs. PYG, spreads, and conversion windows.
- Statements & reporting: English statements, downloadable tax files, position pricing sources.
KYC/Onboarding checklist (prepare these now)
- Passport (valid 6–12 months), proof of address (utility/bank statement).
- Tax residency form (e.g., W-8BEN/W-9 or local equivalent).
- Bank reference or recent account statement.
- Source-of-funds letter (employment, business income, asset sale, etc.).
- If investing via an entity: corporate docs, beneficial owner IDs, board resolution.
- Optional: apostilles or sworn translations (ask the broker what they need).
Fees & minimums (what’s typical)
Expect the usual stack: account opening/maintenance, trading commissions, custody, and FX. For early scoping, ask providers to quote all-in round-trip costs on a sample trade (e.g., buying and later selling a local bond).
Risks to monitor
- Liquidity risk: some names trade infrequently; size positions accordingly.
- Currency & rate risk: understand PYG vs. USD exposure and hedging options.
- Disclosure depth: reporting is improving; cross-check sources.
- Timeline risk: infrastructure go-lives can shift—build flexibility into plans.
A 90-day action plan
Days 1–14 – Map your route
Choose access path (local broker, partner network, or fund).
Shortlist 2–3 providers; schedule intro calls.
Days 15–30 – Paperwork & test trade setup
Gather KYC; request pro-forma fee schedule and custody details.
Pick 3 “pilot” instruments (e.g., 1 gov bond, 1 bank bond, 1 equity).
Days 31–60 – Execute a small pilot
Fund the account; execute a small test trade in each instrument type.
Validate settlement, confirmations, and statements.
Days 61–90 – Review & scale decision
Evaluate costs, liquidity, and operational smoothness.
Decide: scale exposure, add a second access route, or allocate via funds.
Bottom line
Paraguay’s market is moving toward greater accessibility. Investors who line up documentation, relationships, and a small pilot now will be best placed to act when connectivity deepens.
Educational content only. This is not investment advice. Always confirm rules, fees, and timelines with licensed institutions.
