Asunción, Agencia IP.- Paraguay starts 2024 by positioning itself as one of the countries demonstrating a lower level of risk for investors within a region where the average disguises stability in some cases and high uncertainty in other countries.
While neighboring Argentina shows a risk level close to 20 points, Paraguay stands at 1.97, one of the four countries with the lowest risk levels in the region, according to the Emerging Markets Bond Index (EMBI) calculated by JP Morgan Chase.
The EMBI is the primary country risk indicator. It is formed by the difference in interest rates paid by bonds denominated in dollars issued by developing countries and US Treasury Bonds, considered «risk-free.»
In the indicator, Paraguay ranks as the fourth country with the lowest level of risk and the ability to meet its obligations, behind Uruguay, Chile, and Peru. Thus, the country is better positioned than the 12 countries in the study, and its risk level is lower than the regional average of 3.36 points.
Investors use the EMBI, considering that the lower the certainty that the country will honor its obligations, the higher the EMBI of that country will be, and vice versa.