In brief
In Paraguay, President Santiago Peña demanded the resignation of central bank chief Carlos Carvallo on Nov. 3, 2026, as investigations into the digital lender Ueno intensified. Authorities have ordered arrests linked to Ueno and announced a bill to use the national Guarantee Fund to pay depositors. Carvallo said his resignation would allow the central bank to work without political distraction.
On Tuesday, November 3, 2026, Paraguay’s central bank president Carlos Carvallo handed in his resignation after President Santiago Peña urged his departure, as a resolution proceeding was launched against the digital lender Ueno. The move follows a prosecutor’s office request for a criminal investigation and the arrest of eight people linked to the bank, which manages around 3 million customers and about $850 million in public funds.
Across the Asunción suburbs, depositors pressed for access to their savings. According to Reuters, eyewitness Manuel Cáceres said,
We’re demanding access to money we have here at Ueno bank. Unfortunately, a lot of people, myself included, are spending the morning like this.The statement, reported by Reuters, reflects the unverified claims of frustrated customers outside Ueno’s closed branches.
Carvallo noted that he would remain in the central bank during the resolution proceedings but resigned to “step aside … to quell the controversy surrounding the BCP.” Carvallo, who ran Ueno until August 2023, had faced criticism from lawmakers over the bank’s supervision and its ties to Peña, who had been a business partner of the bank’s owners until March 2025.
Peña also announced an agreement with congressional leaders to fast‑track a bill authorizing the national Guarantee Fund to make payments to depositors and to recover public money held by the IPS social security institute and other public pension funds. The law aims to protect depositors and preserve financial stability, according to Reuters.
With Carvallo’s resignation, Paraguay’s government hopes to steady the country’s reputation as an attractive destination for foreign investment, despite the growing scrutiny of its banking sector.
