Some Paraguay USDT sellers ask 13% above the dollar after Ueno Bank freeze

Some sellers of Tether’s USDT in Paraguay are asking around 13% above the official dollar reference rate after the central bank put Ueno Bank into resolution.

The premium sits on a few Bybit peer-to-peer listings, as some three million Ueno customers still cannot access their accounts.

GlobalPartner asked 6,942 guaraníes against a 6,144.02 benchmark

A GlobalPartner listing early on Nov. 5 displayed a rate of 6,942 guaraníes per USDT. The premium is equivalent to 13.0% versus the Banco Central del Paraguay’s Nov. 4 reference rate of 6,144.02 guaraníes to the dollar.

Seller EzeCDE posted 6,943 guaraníes.

GlobalPartner accepted orders from 15,000 to around 1.01 million guaraníes, with the option to receive payment by Paraguayan bank transfer.

Three small listings were asking 4,992 to 5,000 guaraníes, restricted to orders of 16,000 to 48,452 guaraníes.

On the sell side of Bybit, JACK_CAMBIOS_PY bid 6,020 guaraníes per USDT, under the official benchmark. Price was conditional upon payment method and order size.

The central bank, BCP, announced Nov. 3 its board voted unanimously Nov. 2 to put Ueno into resolution. The lender’s solvency ratio had fallen to below half of the required minimum and the regulator said the problem was confined to Ueno and not the wider financial system.

Ueno had 2.94 million customers in June, or about 60% of Paraguay’s adult population. Digital banking, withdrawals and transfers have been frozen.

The bank handled over $800 million in public funds, including about $380 million from the state pension agency, the Instituto de Previsión Social. Funds of CONMEBOL, the South American football confederation, are frozen.

The crisis resulted in eight arrests. The bank’s top management was detained by police on charges of breach of trust and the BCP president resigned.

The token’s 6.49% rise trailed the BCP reference’s 7.48%

The premium itself is not proof that Ueno’s failure drove savers to stablecoins. From October 15 to November 4, the USDT series went up 6.49% from 5,692.36 to 6,061.76 guaraníes on Exchange-rates.org.

The central bank’s dollar reference also rose faster over the same dates, climbing 7.48% from 5,716.25 to 6,144.02 guaraníes. In the interbank market, the US dollar accumulated a rise of 6.43% in the 25 days to November 4, near 6,060 guaraníes.

Arnold Benítez, an economist, said that in situations like the Ueno resolution, savers and firms tend to buy dollars as a temporary shelter. Stablecoins have become a common hedge against inflation in Latin America, according to Cryptopolitan.

Blocked Ueno balances cannot purchase USDT directly. Bybit buyers must send guaraníes to sellers before the tokens are released, requiring the money to remain outside the frozen account.

In a notice on Nov. 4, the BCP said it would commence making advance payments to depositors within 24 hours and that the process would take no longer than five business days. Each saver may receive up to 40 minimum monthly wages minus any overdue debt to Ueno.

The most a depositor can get back in guarantees is 228 million guaraníes. Any remaining balances will be settled after the final calculation by the Superintendencia de Bancos.