Paraguay had continued its decimal coinage with a new copper-nickel coinage in 1925. The three new denominations (50-centavo, 1- and 2-peso) were soon overpowered by a war-driven inflation, however, and when the Chaco War ended in 1938, Paraguay revamped its coinage. The 50-centavo, 1- and 2-peso coins were struck in cheaper aluminum in 1938—and in 1939 copper-nickel 5-peso and 10-peso coins appeared for the first time.
(The Paraguayan star is yellow, by the way, and symbolizes the country’s independence day, 14 May 1811 .)
This 1939 10-peso piece—as is often the case worldwide with a new, higher denomination coin—assumed the duties of an already existing banknote. Unfortunately, though, Paraguay’s 1939-41 chance at good government passed (well, died in a plane crash), and the country’s currency continued to deteriorate.
The currency unit into which this coin was introduced had only a few more years to run. In 1944 the exhausted Paraguayan peso was replaced in circulation by the guarani, at the rate of 100 old pesos to one new guarani.
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