World
Paraguay President Ousted After Bank Collapse Leaves Millions Without Money
The country's leader is now under house arrest as a massive banking crisis shuts off access to accounts for over half the population.
Protesters gather outside a bank building in Paraguay following the financial collapse.
By John Doe
Reporting from Paraguay 
Nov. 10, 2026, 10:03 a.m. - 5 hours ago
A major banking crisis in Paraguay has led to the downfall of the country's president. He has been impeached—which means he was officially removed from his job—and is now under house arrest.
The trouble started when a digital bank collapsed. This means the bank ran out of money and could not help its customers. Now, about 60% of the people in the country cannot get to their own money. That is more than half of everyone living there.
Experts say this event has ruined Paraguay’s reputation. People used to call the country the “Dubai of South America,” suggesting it was a place of great wealth and success. Now, that idea is being called a myth, or a story that wasn't true.
The government is working to fix the mess. They have already started a new investigation to figure out exactly what happened with the bank. They have also put a new person in charge of the Central Bank to try and get things back on track.
For now, the situation is very tense. Many citizens are still waiting to see if they will ever get their money back. The political future of the country remains uncertain as the government tries to recover from this massive scandal.
Source: The Conversation
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