The Central Bank of Paraguay reported that its training institute hosted a regional workshop on central banks’ adaptation to climate change, jointly organized with the Inter-American Development Bank. Held in Asuncion on March 19, the event brought together representatives of Latin American central banks, international organizations, academia and supervisory bodies to examine how climate-related shocks can affect the macroeconomic and financial environment in which central banks operate. In opening remarks, Central Bank of Paraguay President Carlos Carvallo framed climate change as a source of risks relevant to price stability and financial stability, rather than an issue outside central bank mandates. Discussions and research presentations covered the effects of droughts on financial stability, climate stress-testing frameworks and dynamic stochastic general equilibrium models incorporating the energy transition. The Central Bank of Paraguay’s contribution examined the nonlinear transmission of El Niño-related shocks to Paraguay’s financial system. The bank presented the workshop as a platform for strengthening technical capacity, comparing methodologies and identifying further areas for regional collaboration.
Central Bank of Paraguay2026-03-26
Central Bank of Paraguay hosts regional workshop on central bank adaptation to climate change
The Central Bank of Paraguay said its institute hosted a regional workshop with the Inter-American Development Bank on how central banks should analyze and adapt to climate-related macrofinancial risks. The discussions focused on issues including drought impacts, climate stress testing and energy-transition modeling, while the Central Bank of Paraguay presented research on El Niño shocks and Paraguay’s financial system.