Paraguay President Resigns as Guaraní Drops 4%; 13% USDT Premium Fades

On Thursday, Paraguay's guaraní (PYG) weakened 4% versus the dollar after President Santiago Peña stepped down in the wake of the Ueno Bank collapse. That digital lender served over 60% of the nation's adult population.

The 13% premium commonly seen on Tether (USDT) — a dollar-pegged digital coin — was erased by that drop. The heavier toll now falls on those who saved in guaraníes.

What Killed the 13% USDT Premium?

That 13% figure came from comparing a single elevated asking price on a peer-to-peer (P2P) exchange — where traders transact directly — against the official dollar rate of 6,144 guaraníes on November 4.

That benchmark then moved. The Central Bank of Paraguay (BCP) interbank rate settled at 6,388.47 guaraníes on November 5, according to data.

At 20:08 UTC, the top USDT sell order on Binance's P2P marketplace was 6,392.9 guaraníes, per aggregator CriptoYA. That sits less than 0.1% above the official rate.

Local daily ABC Color reported the dollar had climbed 6.43% from October 9 to November 3 before Ueno Bank's failure. Economist Arnold Benítez told the publication he saw no signs of broad dollarization.

Tether CEO Paolo Ardoino nonetheless characterized the episode as demand for his token, whose backing is largely in US Treasury bills.

"USDt is a lifeline for hundreds millions of people in the world," the Tether CEO said.

Who Loses as the Guaraní Drops?

The BCP noted that Paraguay's Deposit Guarantee Fund insures up to 228.3 million guaraníes per depositor. That payout is denominated in guaraníes, not dollars.

Using BCP rates, BeInCrypto calculates that the cap equaled roughly $40,100 at the October 9 exchange rate. By Thursday's rate, it amounts to about $35,700.

According to the Associated Press, Ueno also kept around $800 million in public deposits, which included state pension funds. Reuters described Peña as a Trump ally; he owned a share in Ueno's parent company until last year.

Mensaje del Presidente de la República, Santiago Peña, al pueblo paraguayo.

— Santiago Peña (@SantiPenap) November 5, 2026

Prosecutors have brought charges against 27 bank officials and associates, with allegations that include breach of trust.

Insured deposits are scheduled to be paid by November 17, and a single 15-day extension is permitted. Vice President Pedro Alliana is slated to assume the presidency. The coming question is whether savers who receive refunds will hold guaraníes or pursue Latin America's dollar hunt.