1 Peso

Paraguay's aluminum coinage of the late 1930s was produced against the backdrop of the immediate post-Chaco War period, when the country had effectively bankrupted itself fighting Bolivia from 1932 to 1935. Lightweight aluminum issues were a direct consequence of currency pressures that made traditional bronze or cupro-nickel coinage economically impractical for the smallest denominations.

KM#16 is frequently found with weak peripheral detail on the reverse, a characteristic of the dies rather than circulation wear — worth noting when assessing apparent grade.