(Bloomberg) -Ersarvador’s dollar bonds rose the most in the emerging market on Thursday, after members of the Diet have approved the country’s bitcoin methods needed to secure an international currency fund loan.
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According to index price data edited by Bloomberg, the government’s debt was acquired throughout the curve, increasing by 2.4 cents in 2054 and rising 107 cents. The jump signaled investor optimism that Central American countries are approaching the $ 1.4 billion with IMF.
“This was a law that they needed to pass,” said Berkraze’s strategic strategist, Jason Keanne, to get a multilateral fund. “I expect that the IMF board will be approved in the next few weeks.”
Changes approved by parliament spontaneously make companies accept bitcoin as payment. According to a newspaper La Prensa Grafica report, the government has demanded that the issued currency pays domestic and foreign obligations.
El Salvador’s dollar debt has given 30 % profits to investors in the past 12 months, and has tripled the average profit margin over emerging markets.
In 2021, El Salvador became the first country where the legal currency was adopted as a legal currency, along with the dollar, President Nive Bukele gave a reputation as a pioneer of bitcoin, embracing his country in the IMF that opposed the idea. 。
After many years of negotiations, Bukel became tolerant and agreed to change the law to comply with the IMF. It helped to promote bond prices, but some of them are now trading beyond the standard.
THYS LOUW, a portfolio manager of NINETY ONE UK LTD, states:
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