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Paraguay's Trump-Allied President Quits as Currency Slides: Is the 13% USDT Premium Real?
Paraguay's guaraní fell 4% as Peña resigned over Ueno Bank. See why the 13% USDT premium vanished and who loses now.
Dextape brief
The guaraní fell 4% against the dollar on Thursday after President Santiago Peña resigned amid the collapse of Ueno Bank, an online lender that over 60% of adults relied on. The slide erased the roughly 13% premium previously seen on Tether's USDT, which had compared a high peer-to-peer asking price with a November 4 official rate. By November 5 the central bank's interbank rate had closed at 6,388.47 guaraníes. The insurance ceiling for each depositor is 228.3 million guaraníes, a cap BeInCrypto calculated at about $35,700 at Thursday's rate, down from $40,100 on October 9. Twenty-seven bank officials and associates have been charged by prosecutors, and refunds to insured savers are due by November 17. Vice President Pedro Alliana will assume the presidency.
Why it matters: The episode shows how a local bank failure can quickly move stablecoin premiums and the dollar value of local deposits, which matters to readers tracking dollar-pegged tokens.
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