Paraguay’s President Pedro Alliana on Monday appointed economist Jorge Schreiner as head of the central bank, in an effort to move past the crisis triggered by the intervention at the digital bank Ueno. Alliana announced the decision himself in a post on the social network X. He stressed that the measure aims to strengthen the institutional framework of the central bank and restore the trust of the Paraguayan people.
The crisis in Paraguay prompted this move by the president, according to the same statement from the Paraguayan president. Schreiner’s appointment requires Congress’s approval to take final effect. Schreiner is not an unfamiliar name at the institution: he served on the central bank’s board for two years until 1999 and headed the securities commission for a decade, until 2013.
The president presents his experience in financial institutions as a guarantee for restoring confidence in the country’s banking system. The crisis began with the intervention in and collapse of the digital bank Ueno, which had severe consequences for clients and for Paraguay’s political stability.
The collapse of Ueno left millions of clients struggling to access their accounts and triggered a wave of social and political unrest in the country. The fallout did not stop at the economic level: the bank intervention led to the removal of the former central bank chief, Carlos Carvallo, and of former President of Paraguay Santiago Pena.
Pena was removed from office through an impeachment trial in Congress for poor performance. He and Carvallo were charged by prosecutors over alleged links to the bank. Both were placed in pretrial detention, while investigations into the case continue.
Meanwhile, President Alliana announced on X that he had received a phone call from U.S. Secretary of State Marco Rubio, during which they reaffirmed their countries’ commitment to continue working together. Schreiner’s appointment is now expected to pass to Congress, which will decide on its approval as head of the central bank.