Paraguay is participating in the Latin American Reserve Fund’s Lúmina project alongside Chile, Colombia, Peru and Uruguay. The initiative aims to make international transfers as straightforward as domestic payments.
Banco Central del Paraguay
The Banco Central del Paraguay (BCP) is Paraguay’s central bank. It is responsible for preserving monetary value and financial-system stability, supervises key parts of the banking sector and operates national payment infrastructure such as SIP/SPI. Its data on inflation, interest rates, exchange rates, credit and banks therefore underpin many economic debates. This dossier gathers Pytagua coverage of monetary policy, supervision, deposit protection, digital payments and the statistics used to measure Paraguay’s economy beyond political talking points.
Peña attributed the attention surrounding the Comptroller General’s Office audit of the Superintendency of Banks to commercial disputes that reached Congress and, according to press reports, to political and economic interests behind headlines in some newspapers.
Benigno López says bank secrecy protects customers but should not prevent the Senate from learning about ueno bank’s capital, liquidity and risks. Citing Law 7066/2023, the Constitution, the public-information access law and financial disclosure requirements, he supports withholding customers’ identifying details. He says an accounting exception after Visión Banco was absorbed two years ago was intended to avert a public loss of about US$300 million, while depositors—less-informed creditors despite coverage from the Deposit Guarantee Fund—need to know the bank’s assets and exposure.
Paraguay’s GDP grew 4% in the second quarter, with net external demand adding 6.7 percentage points as domestic demand contracted. Economist Rodrigo Ibarrola said growth remains close to its potential, with no cause for concern.
The dollar fell to about G. 5,890 in Paraguay, close to its 2018 level, and the Paraguayan Rural Association estimates that the guaraní’s appreciation reduced the value of livestock production by G. 2.06 trillion (US$349 million).
Roberto González (ANR) threatened to seek the impeachment of BCP President Carlos Carvallo Spalding, also spelled Carlos Cavallo Spalding, unless questions about Ueno, the custody of public funds and possible conflicts of interest are clarified. He also challenged the “neopeñistas” to defend the government of Santiago Peña’s actions.
The Senate gave the Central Bank of Paraguay 15 days to explain the concentration of public funds at Ueno Bank, accounting discrepancies, transactions with related companies and the handling of an internal memorandum, while the Paraguayan Banking Association calls for transparency and uniform application of the rules.
Santiago Peña met in New York with businesspeople Santiago Jariton, María Bertha Peroni and Daniel Hiller, described as driving one of the most important entertainment and urban-development projects in Paraguay’s history, to present a complex on Asunción’s Costanera Norte with an arena, event center, hotel and shopping mall aimed at Paraguay and the region, with construction expected to begin in early 2027 and backing from the government and the Municipality of Asunción.
The Central Bank of Paraguay has put the CDA-d system into operation, allowing authorized banks and finance companies to offer fully digital savings deposit certificates while paper versions coexist for at least two years.
Senator Rafael Filizzola accused Santiago Peña of using Ueno to make poor deals with state funds and IPS contributors’ money, with possible effects on health care and retirement, as well as supplying energy at low prices and ignoring warnings about the bank.
Paraguay will hold its fourth local Treasury bond issue of 2026 on September 23 through the Asunción Stock Exchange, reopening series maturing in 2030 and 2035 to finance the budget and expand the guaraní capital market.
Paraguay’s Chamber of Deputies left the IPS emergency bill off its agenda despite a priority motion, as a crisis within Honor Colorado — led by Horacio Cartes, who confirmed the Pedro Alliana–Juan Carlos Baruja ticket — surrounds a proposal that could increase the exposure of the institution’s funds to Ueno Bank.
Ignacio Iramain attributed the ANR crisis to a power and business struggle between Cartes and Peña, while Raúl Benítez mocked the conflict as a fight among “hens” with a “somewhat senile” “rooster” and criticized Pedro Alliana for referring to “80 princes,” correcting the number to 43 deputies who, he said, flatter the government and vote in line on its bills.
The Central Bank of Paraguay (BCP) said it will respond within 15 business days to Senate requests about procedures and decisions by the authority and the Superintendency of Banks (SIB) involving mergers, acquisitions, banking operations and public deposits, while Santiago Peña met with sector representatives, including Juan José Galeano and leaders of the Association of Banks of Paraguay (Asoban), who advocated transparency and the technical autonomy of regulators and highlighted the system’s strength after investment-grade status was obtained.
The increase in U.S. interest rates to a range of 3.75% to 4% could strengthen the dollar and reduce the appeal of guarani-denominated assets, but analysts believe domestic factors should limit the immediate impact on Paraguay’s exchange rate.
IPS holds up to 82.49% of its dollar-denominated CDA in the five largest banks, while the Senate is demanding information from BCP on the management of these public resources, banking operations and loans to policyholders.
Paraguay’s currency exchange houses recorded a year-on-year decline in distributable profits in July despite an increase in transactions, due to narrower margins, competition, exchange-rate volatility and the digitalization of services.
Renovation work on 16 blocks of Azara and General Díaz streets in Asunción has reached its final stage, with painting and road markings underway after asphalt repairs and the application of hydraulic concrete under the ASU 400 Blocks Plan.
Santiago Peña announced, in partnership with Taiwan, a Sovereign Artificial Intelligence Computing Center with an initial investment of more than US$300 million and a capacity of 10 megawatts, during a forum discussing technology applications and academic training in Paraguay.
Paraguay’s Senate approved requests for information from the Central Bank of Paraguay about Ueno Bank’s operations and expansion, amid questions about public deposits, possible conflicts of interest, and political rivalries involving the institution and Banco Basa.
A teachers’ strike scheduled for September 17 and 18 in Paraguay challenges the 2027 budget bill, which excludes agreed raises and demands, while senators Blanca Ovelar and Celeste Amarilla disagree over the causes of the education crisis, the results of the 2025 PISA assessment given to 6,507 students, the Ñe’ẽry program, which received US$12 million in 2023, and criticism of teacher training and meritocracy; Amarilla also fears a return of banking crises and mentions Banco Atlas and Ueno, a Paraguayan digital bank.
The Central Bank of Paraguay will unveil a new family of guarani banknotes on October 5, 2026. The notes will enter circulation in the first quarter of 2027 with the same denominations, new designs, different sizes, new materials and security features, while current notes are gradually withdrawn.
Santiago Peña said there is no break with Horacio Cartes, attributed criticism to the municipal elections, defended clarifications over a request for information from the Central Bank involving Ueno Bank, and called for continued dialogue with doctors threatening a strike on September 21 and 22.
Paraguay’s Senate sent the Central Bank 31 questions about Ueno Bank’s operations and the oversight it received, including transactions with companies linked to Grupo Vázquez, the sale of a US$35 million loan portfolio and possible corrective measures, with 15 days to respond.