#ElSalvador | The Bukele administration has announced that next week it will sponsor a bill to convert #Bitcoin into legal tender alongside the $USD.
El Salvador dollarized its economy in 2001. "Central banks are increasingly taking actions that may cause harm to the economic stability of El Salvador," reads part of the bill. The move won't replace the dollar, but rather allow the Central Bank to acquire reserves of Bitcoin. Image
The move also comes amid yearslong debate over whether to break away from the U.S. Dollar to give the Salvadoran Central Bank control over currency supply. A big part of this debate has been the large public debt & payment of public salaries and pensions. elfaro.net/en/202010/el_s…
The Salvadoran government is currently negotiating with the IMF to refinance its large debt — which in January exceeded 85% of GDP — w/ lower, more favorable interest rates & longer-term repayment. The U.S. government's blessing of negotiations will be a major factor. Image
In May, the new Assembly approved $730 million in new debt, surpassing $23 billion in total government debt — over 90 percent of GDP, as @_elfaro_'s @Jim_alva and @RoxLazo94 reported. elfaro.net/es/202105/el_s…
"The macroeconomic situation in #ElSalvador is critical," @StateDept envoy #RicardoZúñiga told our D.C. correspondent @jlsanz. "For the U.S. it’s important to address this problem because an economic crisis...could prompt a new wave of migration." elfaro.net/en/202104/cent…
But the U.S. State Department has also named senior Salvadoran officials as tied to corruption, which Biden has called a "national security threat." His admin says it will increasingly look to international financial systems to target corrupt actors.
If the Salvadoran government fails to gain U.S. support and come to an agreement with the IMF this year to restructure its debt, that could push the government to more fully consider dedollarization or other monetary options, according to economist @Recasta.
Stay tuned for more developments and in-depth analysis by getting our newsletter in your inbox: en.elfaro.net/subscribe

And you can support independent journalism in #CentAm for the price of a coffee a month: support.elfaro.net Image

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More from @ElFaroEnglish

7 Jun
#ElSalvador | This morning the Organization of American States said that "we completely reject" the reasons given on Friday by the Bukele admin to cut off cooperation with the @OEA_CICIES, the International Commission against Impunity in #ElSalvador. oas.org/es/centro_noti…
Bukele argued that "the OAS has no intention to fight impunity in El Salvador" because Secretary General Luis Almagro had contracted former San Salvador mayor Ernesto Muyshondt, of opposition party Arena, as an advisor. Bukele called Muyshondt a "delinquent." Image
On Friday, the new Salvadoran attorney general appointed on May 1 by the Nuevas Ideas-controlled Assembly, Rodolfo Delgado, announced that he would look to cut off all ties to the #CICIES within 30 days. Background on the commission👇
Read 8 tweets
7 Apr
Ricardo Zúñiga, @StateDept Special Envoy to the Northern Triangle, is in #ElSalvador today in Washington's first visit to #CentAm since Biden took office. Photo: Zúñiga, left, during a meeting yesterday with members of the Guatemalan justice system.
There is a stark contrast between Zúñiga's two-day visit to Guatemala, which begain with a meeting with @DrGiammattei, and his one-day trip to El Salvador. State Dept sources say he has no plans to meet with @nayibbukele.
His first meeting in El Salvador will be with the @OEA_CICIES and @MelaraRaul at 4:45 EST. He will then meet at the @USEmbassySV with representatives of various pro-transparency organizations from civil society, including @fusades, @Fundeorg, @CiudadanaAccio1 y @FundacionDTJ.
Read 9 tweets
6 Apr
#efMIGRATION | Part II in @victorpena84's chronicles of the hundreds of Central Americans seeking refuge across the Rio Grande in Roma, Texas 👇 elfaro.net/en/202104/ef_p…
"The so-called migrant crisis being debated in Washington is being lived every night in Roma," reports Peña. Hundreds of mostly Honduran but also Guatemalan & Salvadoran migrants actively seek out Border Patrol every day there to make their asylum claims.👇elfaro.net/en/202103/ef_p…
#efSUBSCRIBE | If you don't already, make sure to get in-depth Central American investigations, news, opinion & current events analysis straight to your inbox, at least once a week. 💯
👉en.elfaro.com/subscribe
Read 4 tweets
23 Feb
#efNEWSLETTER🗞️| Sanctions against Honduran President Proposed by Senate Dems
👉mailchi.mp/elfaro.net/el-… “Ashamed of my government. Proud of my people. Out with [H
#Honduras | Today @SenateDems introduced a bill to sever financial assistance & arms provisions to Honduras in light of allegations of drug trafficking & money laundering against @JuanOrlandoH & ongoing state-sanctioned violence, corruption & impunity. 👇
#efMIGRATION | Central American asylum cases are on the rise in Europe in recent years, yet EU governments are increasingly shutting their doors. @MelissaVidaa sketches the emerging trends & chronicles a few of these transatlantic migration stories 👇elfaro.net/en/202102/cent…
Read 5 tweets
8 Feb 20
#ElSalvador | President @nayibbukele’s confrontation with the Congress over the financing for his security plan has the country on edge. The president has ordered Congress to come to session on Sunday, called for a protest the same day, and talks about “insurrection.”
@nayibbukele It’s the first time in years a president has called for an “extraordinary session” of Congress, and the only time *demanding* members vote on a funding bill. He is basing this demand on Article 167 of the Constitution.
@nayibbukele Salvadoran President Bukele has threatened members of Congress with “consequences” if they don’t meet what he has called “their constitutional obligation.”
Read 13 tweets

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