# Paraguayan banking sector regulatory scrutiny

> Live situation record from CLSTR: https://clstr.news/situations/paraguayan-banking-sector-regulatory-scrutiny
> Updated: 2026-10-07T20:16:30.000Z. Sources: 32. Developments: 2.

Political and regulatory scrutiny has intensified regarding the Central Bank of Paraguay (BCP) and the stability of the national banking system. The tension began when legislator Roberto González threatened impeachment proceedings against BCP head Carlos Carvallo Spalding, alleging potential conflicts of interest due to Spalding’s previous role as president of Ueno Bank. González also criticized legislative changes that he argued weakened conflict of interest prevention laws and financial solvency requirements.

In response to requests from the Senate, the BCP submitted a 31-page confidential report to lawmakers. Senate President Basilio Núñez confirmed receipt of the documents in a sealed envelope, noting that the information is protected by banking secrecy laws and that legislators are now bound by legal confidentiality obligations. The report addresses information requests regarding several financial institutions, including Ueno Bank, Sudameris Bank, and Banco Atlas.

Amidst the scrutiny, the BCP issued a formal statement to debunk social media rumors claiming a potential intervention in the national financial system, characterizing such claims as “totally false.” The central bank emphasized that the national financial system maintains adequate levels of solvency and liquidity and continues to operate normally. Regarding the specific oversight of Ueno Bank, the bank’s president, Juan Manuel Gustale, previously stated that the institution had not received extraordinary sanctions or bailout plans, describing regulatory observations as part of standard oversight processes.

## Claims

- The AGN reported that the BCRA lost US$1,023 million due to financial operations involving gold reserves in 2025. (disputed by 11 sources)
- The BCRA claims a net positive result of US$2,505 million from its gold position in 2025, accounting for both asset appreciation and hedging costs. (disputed by 5 sources)
- The AGN concluded that the BCRA lost money by speculating on the international price trajectory of gold and miscalculating the outcome. (corroborated by 7 sources)
- The loss includes US$960 million from negative operation results and US$62.8 million in option premiums. (corroborated by 5 sources)
- The AGN noted that physical gold reserves have never been used for risk transactions of this magnitude in the history of BCRA audits. (corroborated by 5 sources)
- The BCP affirmed that the national financial system is operating normally with adequate solvency and liquidity. (corroborated by 4 sources)
- The BCRA stated that its gold hedging operations cover 100% of its position and have been a standard practice since 2007. (corroborated by 4 sources)
- The Central Bank used gold bullion as collateral to bet against significant price increases in the metal. (corroborated by 4 sources)
- The BCP report to the Senate contains 31 pages protected by banking secrecy. (corroborated by 3 sources)
- The BCP stated that rumors of a financial system intervention are totally false. (corroborated by 3 sources)
- The BCRA accused the AGN leadership of acting with purely political motives to discredit the central bank. (corroborated by 3 sources)
- The AGN is conducting an audit to clarify the physical location and legal custody of gold ingots transferred abroad. (corroborated by 2 sources)

## Timeline

### 2026-10-07: Argentina's Central Bank reported US$1,023 million loss in gold operations

The AGN reported a US$1,023 million loss by Argentina's Central Bank due to gold-backed derivative operations, while the BCRA defends the strategy as a successful hedging practice.

27 sources. https://clstr.news/cluster/central-bank-of-paraguay-submits-confidential-report-to-senate

### 2026-09-21: Paraguay legislator threatens impeachment of Central Bank head

A Paraguayan legislator is considering impeachment for the head of the Central Bank over conflict of interest allegations, amid banking sector concerns regarding solvency and regulatory oversight.

6 sources. https://clstr.news/cluster/paraguay-legislator-threatens-impeachment-of-central-bank-head

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Cite as: Paraguayan banking sector regulatory scrutiny. CLSTR, https://clstr.news/situations/paraguayan-banking-sector-regulatory-scrutiny