San Salvador has pressed on regardless and Bukele has postured his country’s growing holdings as a generational bet, insisting the country “will not sell” and arguing that the reserve will appreciate over time rather than serve as a near-term trade. The standoff has become a recurring subplot in El Salvador’s saga with the lender, testing how far a sovereign borrower can diverge from IMF guidance while still drawing on its money.
While the optics and optimism of the move are something worth commending, the math is nothing to write home about, at least at the moment.
In any case, the next question is whether El Salvador can keep stacking coins without triggering a massive economic shortfall, especially if prices continue to test the sub-$60,000 range. Moreover, a sharper confrontation with the IMF may also be in the books if Bukele shows no sign of breaking stride.
