Paraguay is close to achieving investment-grade status, as indicated by its finance minister amid preparations for a dollar bond sale and potential local currency note issuance on global markets. Paraguay plans a 12-year dollar bond and explores a local currency issuance, following the footsteps of Chile, Jamaica, and the Dominican Republic. Recent inflation moderation has led to a 200 bps cut in the benchmark interest rate since August, with expectations of a further 100 bps reduction by the end of 2024. The government is authorized to issue up to USD 1.2 bln in bonds, potentially increasing to USD 1.5 bln to fund this year’s budget.