[1] Its design, a red–white–blue triband, was inspired by the colours of the French Tricolour, believed to signify independence and liberty.

The flag is unusual because it differs on its obverse and reverse sides: the obverse of the flag shows the national coat of arms, and the reverse shows the seal of the treasury.

Officially adopted in 1842 (following the Recomendación, i.e.: address, de la Junta gubernativa de Asunción),[1] each side of this tricolour flag contains a horizontal tricolor of red, white and blue with the national emblem centered on the white band.

[5] The differences in the obverse and reverse sides comes from the period when José de Francia was in power (1814–1840).

The coat of arms was simplified and the design was brought closer to its original form.