Bloomberg confirms that Trump’s victory would free El Salvador’s agreement with the International Monetary Fund

Donald Trump’s victory in the US elections could have positive effects on the Salvadoran economy, according to an analysis published by Bloomberg. The digital platform indicates that the Republican politician’s victory will free up billions of dollars in funds for El Salvador, especially from the International Monetary Fund. Chris Press, portfolio manager of Pictet Asset Management, confirmed that Bitcoin will become less of a problem for the IMF if Trump, now the official candidate of the Republican Party, wins the upcoming presidential election, mainly because the United States is the largest contributor to the IMF. The publication highlights the continued support that El Salvadoran President Nayib Bukele has shown for Trump on various occasions, and stressed that the Salvadoran president is “stuck waiting for Trump to come back,” in addition to the British bank Standard Chartered. It predicted this year that if Trump wins the elections in November, Bitcoin could also reach $150,000 by the end of this year. Bloomberg confirmed that investors in emerging markets expect the dollar to rise, while the Mexican peso and Asian currencies are affected by Trump’s actions regarding immigration and trade.

The role of the International Monetary Fund

El Salvador and the IMF have been meeting since 2021 to create a $1.3 billion Extended Services Feasibility Program (SAF). In February 2023, an IMF mission visited the country and issued a statement acknowledging the progress made in security and remittances, but reiterating the need to abolish Bitcoin as legal tender, which has been in effect in the country since September 2021. Negotiations have been ongoing and continue to be agreed by both parties, and in April of this year, the IMF confirmed that The talks continued. And that they did not support the issuance of Eurobonds worth $1 billion issued by the Salvadoran government in the same month. The latest information about the dialogue with the IMF was reported by the Vice President of the Republic, Felix Ulloa. The official said that the country is “on the verge” of closing down Agreement with the international organization After overcoming “some remarks” about Bitcoin, economists and former presidents of the Central Reserve Bank (BCR) have highlighted on several occasions the need for El Salvador to reach an agreement with the IMF, not only for the financial support that this would mean. At the same time, it opens the doors to other organizations such as the World Bank (WB) and the Inter-American Development Bank (IDB).