Paraguay’s central bank took control of digital lender Ueno Bank last week, temporarily cutting nearly three million customers off from their accounts. Among those affected were market traders in Asunción who had opened their first bank accounts with Ueno and come to rely on it to take payments and deposit their earnings.
Market traders turn back to cash
At Mercado 4, a sprawling market in the capital, vendors used Ueno’s terminals to accept payments for everything from fruit to clothing and electronics. The bank offered a simple account-opening process and cashback incentives. Traders could also deposit their takings outside normal banking hours. A local merchants’ association estimated that around 80% of the market’s vendors used Ueno.
Since the collapse, some stallholders have moved to other banks, while others have returned to cash. For those traders, the disruption has meant handling and storing more cash while waiting to recover funds or set up new payment arrangements. The impact is particularly acute in a country where informal employment accounted for about 60% of the workforce last year.
Deposit guarantee fund reimburses customers
The central bank put Ueno into resolution after finding that its solvency ratio had fallen below half the required minimum. A regulatory review identified weaknesses in the quality of its assets, lending to companies linked to its controlling group and gaps in the documentation of some transactions.
President Pedro Alliana said on Tuesday that nearly 95% of customers covered by Paraguay’s deposit guarantee had been reimbursed. He said the remaining payments were due on Wednesday. Authorities have also been working to transfer customers to other banks. On Wednesday, Fitch placed Paraguay’s sovereign credit rating on watch for a possible downgrade, citing the potential impact on public finances and the wider economy.
At Mercado 4, the immediate concern is whether traders can find another way to take digital payments and access the proceeds of each day’s sales.
Newshub Editorial in South America – 12 November 2026
Paraguay’s central bank took control of digital lender Ueno Bank last week, temporarily cutting nearly three million customers off from their accounts. Among those affected were market traders in Asunción who had opened their first bank accounts with Ueno and come to rely on it to take payments and deposit their earnings.
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