ASUNCION – The devaluation of the yuan, which has fallen in value by nearly 5 percent this week, is bad news for soy growers in Paraguay, the world’s fourth-largest producer of the commodity, a product that reaches China indirectly, Paraguayan Exporters Association, or CAPEX, president Cesar Ros told EFE on Thursday.
“It’s not good news and, basically, it affects all commodity exports from this part of the world, and Paraguay because of its raw materials exports,” Ros said.
Paraguay’s direct exports of soy to China are small, but the commodity reaches the Asian giant via multinational corporations operating in the food industry.
“Paraguayan soy has one of the highest quality standards in the region because of its concentration of oil, which is blended into soy of other origins. Paraguayan soy is quite renowned, but its marketing is pretty limited,” Ros said.
The Chinese currency’s devaluation comes as the soy sector was starting to stabilize in Paraguay and show signs of “maintaining the kind of profitability that makes it viable,” the CAPEX president said.
Paraguay’s economy depends on exports of soy, corn, cotton and other agricultural products, as well as the production and sale of beef.
The central bank expects Paraguay’s economy to grow about 4 percent this year to $30.03 billion.