The English article for Paraguay in Wikipedia mentions that Paraguay is pronounced as /ˈpɛərəɡweɪ/, which matches the pronunciation recommended by Merriam-Webster. However, inogolo recommends /paɾaˈɣwai/ which is similar to the Spanish and Guarani pronunciations. I have heard both pronunciations in the U.S. but I could not find the preferred pronunciation in other places.
Although I am a native Spanish speaker, I prefer /ˈpɛərəɡweɪ/ since it seems more natural in U.S. English. This is analogous to pronouncing Florida as /ˈflɒrɪdə/ instead of the Spanish-based /flo.ˈri.da/.
Does one region prefer one pronunciation over the other? Is there a pronunciation that is preferred overall?
This question also applies to the pronunciation of Uruguay.