How a bank collapse in Paraguay brought down the country’s President | Explained

On November 3, 2026, Paraguay's central bank chief resigned at President Santiago Peña’s request amid growing concerns over digital lender Ueno. By November 5, protests erupted across the country after Ueno Bank was shut down due to a solvency crisis, leaving an estimated 60% of the adult population unable to access their savings. This led to widespread public anger and political turmoil. President Peña announced his resignation on X (a social media platform) to prevent further instability, moments before facing impeachment proceedings in Congress. The central bank had begun liquidating Ueno’s assets but faced significant delays, exacerbating public frustration. On November 7, a Paraguayan judge ordered former President Peña held in pretrial detention at a military facility while prosecutors charged him with breach of trust and administration for personal gain, directly linking his actions to the collapse of Ueno Bank.