El Salvador Defies IMF Deal, Continues Bitcoin Accumulation

El Salvador, under President Nayib Bukele, remains committed to buying Bitcoin despite securing a deal with the International Monetary Fund (IMF). Contrary to speculation that the agreement might halt its Bitcoin strategy, Bukele reaffirmed his stance on X, stating, "No, it’s not stopping." He emphasized that if the country continued accumulating Bitcoin during global opposition and dwindling support from the crypto community, it has no reason to stop now.

The IMF’s latest report on El Salvador highlights economic recovery, driven by strong remittances and tourism growth. Inflation has eased, and security conditions have improved. The report also notes that sovereign spreads have narrowed, thanks to debt buyback efforts that have eased short-term external financing pressures.

Despite this progress, El Salvador still faces macroeconomic risks, including high fiscal deficits, mounting debt, and limited financial buffers, exacerbated by its dollarized economy. However, the Bukele administration plans to address these structural challenges while fostering economic growth under the IMF-supported program.

Bitcoin remains central to El Salvador’s economic vision, aligning with its long-term strategy to reshape the nation’s financial landscape.