The Central Bank of Paraguay has opened a public consultation on a draft regulation for a Primary Dealers Program intended to develop and deepen the secondary market for Monetary Regulation Bills, or Letras de Regulación Monetaria (LRM). The draft introduces the primary dealer role and sets out an objective framework for designating entities authorized to participate in primary LRM issuance, while also seeking to strengthen liquidity and trading in the secondary market. The proposed regulation defines the rights and obligations of primary dealers and applicants, the mechanisms for assessing performance, the conditions for remaining in the program and the applicable sanctions regime. The program’s stated goals are to secure minimum demand in competitive LRM auctions, promote active and sustained secondary market trading, improve the efficiency of monetary policy transmission channels and support the formation of a reference yield curve across public securities maturities for market comparison and risk assessment. Comments will be accepted until Feb. 6, 2026.
Central Bank of Paraguay2026-01-07
Central Bank of Paraguay launches consultation on primary dealers program for monetary regulation bills
The Central Bank of Paraguay has launched a public consultation on a draft Primary Dealers Program for Monetary Regulation Bills that is intended to deepen the LRM secondary market. The proposal sets objective designation criteria and rules on dealers’ rights, obligations, performance reviews, continued participation and sanctions. It is designed to support auction demand, secondary market liquidity, monetary policy transmission and a reference yield curve.