The Central Bank of Paraguay has updated the rules for trading Letras de Regulación Monetaria, or LRMs, to deepen activity in the secondary market. The main change allows any natural or legal person resident in Paraguay to buy LRMs in the secondary market directly from participants that acquired the instruments in the primary issuance, namely banks and finance companies. The update also removes the requirement for certain indirect participants in secondary market trading to maintain a minimum daily LRM balance on their balance sheets. LRMs are securities issued by the central bank for monetary regulation purposes, and the bank said the revised framework should broaden participation, support the formation of a yield curve based on traded rates, and provide a reference for pricing other financial instruments and valuing these operations on financial institutions' balance sheets.
Central Bank of Paraguay2025-06-25
Central Bank of Paraguay broadens secondary market access to monetary regulation bills and removes minimum holding requirement
The Central Bank of Paraguay has revised the rules for secondary trading of Letras de Regulación Monetaria. Any resident individual or legal entity can now buy the instruments in the secondary market from banks and finance companies that acquired them at primary issuance. The central bank also removed a minimum daily holding requirement for certain indirect participants to widen market participation and support yield curve formation.