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Landlocked country in central South America. Bordered by Argentina to the south and southwest, Brazil to the east and northeast, and Bolivia to the northwest. Paraguay lies on both banks of the Paraguay River, which runs through the center of the country from north to south. Due to its central location in South America, it is sometimes referred to as Corazón de Sudamérica ("Heart of South America"). Paraguay is one of the two landlocked countries (the other is Bolivia), and is the smallest landlocked country in the Americas. Capital: Asunción. Currency: Guaraní (PYG).