Governorate of Paraguay Governorate of Paraguay The Governorate of Paraguay (), originally called the Governorate of Guayrá, was a governorate of the Spanish Empire and part of the Viceroyalty of Peru. Its seat was the city of Asunción; its territory roughly encompassed the modern day country of Paraguay. The Governorate was created in December 16, 1617 by the royal decree of King Philip III as a split of the Governorate of the Río de la Plata and of Paraguay into its respective halves. The Governorate lasted until 1782, after which the massive Viceroyalty of Peru was split, and Paraguay became an intendency ("intendencia")
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