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(pâr´egwa, -gwi, Span. pärägwi´) , officially Republic of Paraguay, republic (1995 est. pop. 5,358,000), 157,047 sq mi (406,752 sq km), S central South America. Paraguay is enclosed by Bolivia on the north and west, Brazil on the east, and Argentina on the south and west; Bolivia and Paraguay are the two landlocked nations of the continent. The capital and by far the largest city is Asunción .