El Salvador's President Defies IMF, Continues Bitcoin Purchases

Salvadoran President Nayib Bukele made headlines on March 4 when he announced that his government will continue buying Bitcoin, despite the conditions set by the International Monetary Fund (IMF). In January, the IMF approved a $1.4 billion loan for El Salvador with the condition that they stop using Bitcoin as legal tender. Despite the IMF's restrictions, Bukele affirmed that El Salvador will persist in acquiring Bitcoin. The clash between Bukele's Bitcoin plans and the IMF's terms has sparked concerns about the country's Bitcoin reserves and the potential repercussions of defying the lender. The reason behind the increase in El Salvador's national debt in the past five years remains unclear to the citizens. The government successfully executed a debt buy-back operation, but it was financed by acquiring new debt at higher interest rates. Unseen Finance highlighted the challenging economic situation in El Salvador, with a growing poverty rate, underscoring the importance of avoiding any missteps with the IMF. Despite the recent Bitcoin purchases and the approaching deadline of April 30, it appears that El Salvador has not violated the agreement with the IMF, although the IMF may still have reservations. President Bukele's stance on a potential showdown with the IMF regarding Bitcoin remains uncertain.