Paraguay’s currency, the guaraní (PYG), lost 4% against the dollar on Thursday as Paraguay president Santiago Peña resigned over the collapse of Ueno Bank, a digital lender used by more than 60% of the country’s adults.
That slide wiped out the widely shared 13% premium on Tether (USDT), a digital token pegged to the dollar. The bigger loss now sits with savers holding guaraníes.
Why Did the 13% USDT Premium Disappear?
The 13% figure compared one high asking price on a peer-to-peer (P2P) market, where users trade directly, with the November 4 official dollar rate of 6,144 guaraníes.
That benchmark then moved. The Central Bank of Paraguay (BCP) interbank rate closed at 6,388.47 guaraníes on November 5, data shows.
The best USDT sell offer on Binance’s P2P market stood at 6,392.9 guaraníes at 20:08 UTC, per aggregator CriptoYA. That is less than 0.1% above the official rate.
The dollar rose before Ueno Bank failed, gaining 6.43% between October 9 and November 3, local daily ABC Color reported. Economist Arnold Benítez told the paper there was no evidence of widespread dollarization.
Tether CEO Paolo Ardoino still 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,” the Tether CEO chimed.
Whose Money Shrinks as the Guaraní Falls?
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, by BeInCrypto’s calculation from BCP rates. At Thursday’s rate, it is worth about $35,700.
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.
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