Paraguay's President Santiago Peña resigned on Thursday following the collapse of Ueno Bank, a digital lender used by more than 60% of the country's adults. The guaraní (PYG) fell 4% against the dollar that day, according to the report.
USDT Premium Disappears
A widely shared 13% premium on Tether (USDT), a digital token pegged to the dollar, was wiped out by the currency slide. The figure had compared one high asking price on a peer-to-peer (P2P) market with the November 4 official dollar rate of 6,144 guaraníes.
That benchmark moved. The Central Bank of Paraguay (BCP) interbank rate closed at 6,388.47 guaraníes on November 5. By 20:08 UTC, the best USDT sell offer on Binance's P2P market stood at 6,392.9 guaraníes, per aggregator CriptoYA—less than 0.1% above the official rate.
The dollar had already risen 6.43% between October 9 and November 3, before Ueno Bank failed, local daily ABC Color reported. Economist Arnold Benítez told the paper there was no evidence of widespread dollarization.
Tether CEO Paolo Ardoino framed the episode as demand for his token, which is backed mainly by US Treasury bills. "USDt is a lifeline for hundreds millions of people in the world," he said.
Guaraní Depreciation Hits Savers
Paraguay's Deposit Guarantee Fund covers up to 228.3 million guaraníes per depositor, the BCP said. The payout is fixed in guaraníes, not dollars. At the October 9 rate, that cap was worth about $40,100; at Thursday's rate, it is worth about $35,700, by BeInCrypto's calculation from BCP rates.
Ueno also held about $800 million in public deposits, including state pension money, the Associated Press reported. Peña, a Trump ally per Reuters, held a stake in Ueno's holding company until last year.
Prosecutors have charged 27 bank officials and associates, alleging offenses including breach of trust.
Insured payouts are due by November 17, with one 15-day extension allowed. Vice President Pedro Alliana is set to take over. The next test is whether refunded savers keep guaraníes or join Latin America's dollar hunt.
