Paraguay River 98% of the country's inhabitants. As such the river is considered perhaps the key geographical feature of the country with which it shares its name. Some after flowing through the middle of Paraguay, at the confluence with the Pilcomayo River and passing the Paraguayan capital city, Asunción, the river forms the border with Argentina, flowing generally south-southwesterly for another before it reaches its end, joining with the Paraná River. The Paraguay River is the second major river of the Rio de la Plata Basin, after the Paraná River. The Paraguay's drainage basin, about , covers a vast area that includes
Economy of Paraguay Most of Paraguay's trade takes place with Uruguay, Brazil and Argentina. In 2002 Paraguay conducted more than US$400 million in trade with Argentina and nearly US$800 million with Brazil. Paraguay is also a member of the Inter-American Development Bank, Latin American Integration Association, and Latin American Economic System and a signatory to the agreement creating the South American Community of Nations. In 2004 Paraguay signed an energy cooperation agreement with Venezuela to purchase oil and petroleum. Venezuela agreed to concessional financing that allowed Paraguay to pay over a 15-year period at a nominal interest rate. Imports totaled US$3.3 billion in