Paraguayan Prosecutors Order Arrest of Santiago Peña

Paraguayan prosecutors have indicted former president Santiago Peña and former Central Bank chief Carlos Carvallo. The public prosecutor's office ordered their preventive detention this Saturday. Investigations are looking into the embezzlement of public funds and pension assets.

The resources were allegedly allocated improperly at Ueno Bank. The agency highlights serious failures in the oversight and control mechanisms of the financial institution. There are suspicions that data regarding these operations were altered or omitted by those involved.

Santiago Peña faces charges of breach of trust as an instigator. He is also accused of self-dealing. The public prosecutor's office detailed that the former president's conduct caused losses to the national treasury.

Carlos Carvallo faces charges of breach of trust and the production of false public documents. The former Central Bank president is also accused of self-dealing. Authorities continue to investigate the facts.

Political and legal instability in neighboring countries may increase regional risk perception and pressure the volatility of emerging market currencies against the dollar.