Picture has been licensed under a GFDL
Permission: GNU Free Documentation License
The guaranĂ­, named after a dominate tribe, replaced the peso as the national currency of Paraguay on October 5, 1943 and was first issued in 1994. Much like the United Statesâ' dollar, guaranĂ­ are issued in both coins and banknotes. Guarani banknotes were first issued in 1, 5, 10, 50, 100, 500 and 1000 guaranĂ­ in 1944 and were completely redesigned in 1963 by the Paraguay government. Until 2009, guaranĂ­ banknotes were printed on cotton-fiber bills, though today new guaranĂ­ are printed on polymer-made bills, which are much more durable. Since 1990, 50,000 and 100,000 guaranĂ­ banknotes have been minted and are in circulation today.

When first issued, coins were round and made of aluminum and bronze in denominations of 1, 5, 10, 25 and 50. 1, 5, 10 and 25 coins featured a flower, the date minted and the denomination, while 50 guaranĂ­ coins featured the lion and liberty cap insignia as well as the date minted and the denomination. The second issue of the coin came about in 1953, changing the coins from round to scalloped and featuring the lion and liberty cap. The 1 and 5 guaranĂ­ coins were discontinued. Today, guaranĂ­ coins are made of brass plated steel nickel-brass and come in denominations of 1, 5, 10, 50, 100, 500 and 1000.

Due to Paraguayâ's political corruption, the guaranĂ­ has been subject to extreme inflation and has consistently depreciated in value relative to every other major currency. Paraguay is also mainly an agricultural country, making their primary export subject to weather and thereby causing extreme fluctuation in the yearly income of the country. In 2011, the Paraguayan government plans to revalue the guaranĂ­ as a Nuevo in an effort to curb inflation and strengthen the currency of Paraguay. Currently, the guaranĂ­ has an exchange rate of 0.00021 to the US dollar, a 0.00014 exchange rate to the British pound and a 0.01902 exchange rate to the Japanese yen, making it the least valued currency in North and South America.