Paraguay's currency, the guaraní, depreciated by 4% against the dollar on Thursday following the resignation of President Santiago Peña. The political shift occurred amid the collapse of Ueno Bank, a digital lender serving over 60% of the country's adult population. This economic instability effectively eliminated the 13% premium previously observed on Tether (USDT) in peer-to-peer markets.
Data from CriptoYA indicates that the best USDT sell offer on Binance’s P2P platform reached 6,392.9 guaraníes, representing a difference of less than 0.1% from the official interbank rate. The official rate closed at 6,388.47 guaraníes on November 5, according to the Central Bank of Paraguay. Prior to the bank's failure, the dollar had already appreciated by 6.43% between October 9 and November 3.
The collapse of Ueno Bank has impacted public deposits, which reportedly totaled $800 million, including state pension funds. The national Deposit Guarantee Fund provides coverage up to 228.3 million guaraníes per depositor. Due to the currency's decline, the dollar value of this insurance cap dropped from approximately $40,100 on October 9 to roughly $35,700 by Thursday.
Authorities have initiated legal proceedings against 27 bank officials and associates, citing charges such as breach of trust. Insured payouts are scheduled to commence by November 17, with a potential 15-day extension available. Vice President Pedro Alliana is designated to assume the presidency following the resignation of Santiago Peña.
