Paraguay's financial crimes prosecutor officially charged President Luis Gonzalez Macchi with skimming $16 million from the Central Bank for personal use in a "high-interest" investment operation.
The allegation of a high-interest return operation at New York's Citibank that prosecutor Mr Javier Contreras alleged Mr Gonzalez Macchi had plotted was ridiculous, a presidential spokesman said over the weekend.
Mr Contreras told reporters here that he filed charges so that Judge Alcides Corbeta, who is handling the case, calls for the president's impeachment in Congress.
The Paraguayan congress, however, is dominated by Mr Gonzalez Macchi supporters.
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AFP