Gustavo Leite: The Senator Targeting Paraguay’s Central Bank
PROFILE · PARAGUAY
Key Facts
- —The country Paraguay is a landlocked South American exporter of soy, beef and hydropower, governed by President Santiago Peña of the conservative Colorado Party.
- —Why it matters Gustavo Leite is a ruling-party senator and until July was Paraguay’s ambassador in Washington. His attack on the central bank exposes a rift inside the governing party.
- —Why now On Wednesday 14 October, Leite urged Peña to replace the whole central bank board and the superintendent of banks.
- —What happened Leite called the bank’s answers to a Senate inquiry on ueno bank incomplete. He said only a full change of leadership would calm the financial system.
- —The numbers Leite was industry and commerce minister from 2013 to 2018 and ambassador for about 11 months. In July he proposed cutting US$400 million in state spending.
- —What it means for you Investors in Paraguay should watch whether his pressure moves Peña, since any new board would need the Senate’s prior agreement.
- —Still open Whether Peña acts on the demand, and whether Leite speaks for former president Horacio Cartes in the fight over the 2028 succession.
- —Power Index Paraguay ranks 10th of 14 in The Rio Times Latin America Power Index, with 36.0 points (October 2026 edition).
Gustavo Leite, a senator from Paraguay’s ruling Colorado Party, has become the loudest voice demanding a clean sweep at the central bank. On Wednesday 14 October he urged President Santiago Peña to replace all five board members and the superintendent of banks.
The dispute is over how the Banco Central del Paraguay (BCP) supervised ueno bank, a digital lender. For US readers, Leite matters because he was Paraguay’s ambassador in Washington until July and now openly challenges his own government.
Who Is Gustavo Leite
Leite earned a business administration degree in California in 1985 and a master’s in international marketing in Scotland in 1988. He worked in the private sector before entering public service in 1989, the Asunción daily La Nación reports.
His first public post was first secretary at Paraguay’s embassy to the European Economic Community in Brussels. He later served as industry and commerce minister under President Horacio Cartes from 2013 to 2018.
Cartes, a businessman and former president, leads the Colorado Party and its Honor Colorado faction, to which Leite belongs. Leite was then elected to the Senate for the 2023 to 2028 term.
From Washington Back to the Senate
Leite took leave from the Senate in July 2025 to become Paraguay’s ambassador to the United States. Substitute senator Alfonso Noria Duarte was sworn in to hold his seat while he was abroad.
His time in Washington was not quiet. ABC Color reported that he relayed claims by foreign investors of bribe demands under Peña’s government.
He also said there was “not even a whiff of bribery” under Cartes. Foreign Minister Rubén Ramírez then summoned him to call him to order, ABC Color said.
In July 2026 Leite told the Senate he would retake his seat on 22 July, after about 11 months as ambassador. Congress president Basilio Núñez said family reasons also played a part and that Leite would not join Peña’s cabinet.
A Ruling-Party Critic of Peña
In his first session back, Leite listed 10 failings in state policy and offered his own fixes. His headline proposal was to cut US$400 million in superfluous spending and use it for medicines and health workers.
He opened by saying the Senate could help people “live better”, a clear nod to Peña’s campaign promise. He argued that money spent on trips, catering and advertising could buy medicine instead.
It was not his first clash with the president. In January 2025 he backed a bill with Senator Antonio Barrios and former senator Sergio Godoy to steer about US$40 million to the National Cancer Institute.
ABC Color noted that the cancer-funding campaign faded once he was offered the Washington post in late May 2025. The paper also speculated that his latest criticism could be a bid for a new reward from the government.
Why Gustavo Leite Targets the Central Bank
The trigger is a central bank report to the Senate on ueno bank and other lenders, delivered in early October. Leite said the Senate had asked 31 questions and that eight to ten went unanswered, Radio Monumental reported.
“It has been an absolutely unsatisfactory answer, it answers nothing,” Leite said on Wednesday, as quoted by ABC Color. He said a vague reply meant the bank either would not answer or did not want something known.
He said business leaders had “implored” Peña to change the board at an unpublicised meeting at the presidential residence on Friday 9 October. The presidency has not confirmed that account.
He argued that a request for resignations would be faster and more honourable than a formal removal. “From now on, everything that happens in the financial system is the exclusive responsibility of the president,” he said.
Asked about personal motives, Leite said he holds no shares or investments in any bank. Like most Paraguayans, he added, he only has debts with banks.
He compared the financial system to the blood that keeps an economy alive. The wider dispute is laid out in Paraguay Central Bank Board Crisis: What Is at Stake.
The Cartes Factor
Leite’s push comes as the Colorado Party splits over the 2028 presidential race. Cartes has named Juan Carlos Baruja as Honor Colorado’s presidential pre-candidate, sidelining Vice President Pedro Alliana.
On Wednesday, Leite reaffirmed his loyalty to Cartes and said no running mate had been named yet, Última Hora reported. Background on that split is in Paraguay VP Defies Cartes on 13 October.
The opposition is pressing on the central bank too. Senator Rafael Filizzola of the Progressive Democratic Party filed a non-binding draft on 14 October urging removal of every board member.
The report that started the row is covered in Paraguay Senate Gets 31-Page Report on Ueno Bank Loans. Its full text has not been published.
What It Means for You
For US investors and companies, the central bank licenses and supervises every bank in Paraguay. A ruling-party senator calling its leadership unreliable is a political risk worth tracking.
So far the fight concerns how one bank was supervised, not the soundness of the whole system. Any new board would also need the Senate’s prior agreement, which slows abrupt change.
For the wider picture, see Paraguay Explained: The Country, Its Politics, Its Economy and What to Watch and Paraguay: South America’s Quiet Economic Miracle, Explained. Practical information on the capital is on the Asunción city page.
What Is Not Known
It is not known whether Peña will ask the board to resign or whether the Senate will vote on the opposition motion. The central bank’s report has not been published, so Leite’s count of unanswered questions cannot be checked.
It is also unclear whether Leite speaks for Cartes on the central bank or only for himself. The presidency has not confirmed the business meeting he described.
Frequently Asked Questions
Who is Gustavo Leite?
He is a Colorado Party senator in Paraguay and a loyalist of former president Horacio Cartes. He was industry and commerce minister from 2013 to 2018 and ambassador to the United States from July 2025.
Why does Gustavo Leite want the central bank board replaced?
He says the bank’s answers to a Senate inquiry on ueno bank were incomplete. He argues only a full change of leadership can restore confidence in the financial system.
When did Leite return from Washington?
He told the Senate he would retake his seat on 22 July 2026. That ended about 11 months as Paraguay’s ambassador to the United States.
Does Leite have a stake in any bank?
He says he holds no shares or investments in any bank. He added that, like most Paraguayans, he only has debts with banks.
Can Leite remove the board himself?
No, because removal for poor performance has to be started by the executive. It also needs the Senate’s prior agreement under the central bank’s charter law.
Sources: Law 489/1995, BCP charter law (Congressional Library) · Banco Central del Paraguay, board members · La Nación, Leite returns to the Senate (10 July) · ABC Color, Leite back in the Senate (26 July) · ABC Color, Leite on the BCP (14 October) · Radio Monumental, Leite (14 October) · Última Hora, Leite and Cartes (14 October) · ABC Color, Filizzola motion (14 October)
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error