Is El Salvador Breaking International Rules? IMF Says the Country is Still Compliant

In a recent update during the Spring Meetings 2025 for the Western Hemisphere Department, the International Monetary Fund (IMF) confirmed that El Salvador is adhering to its pledge not to accumulate additional Bitcoin through the public sector. Despite concerns raised by observers regarding the country’s Bitcoin activities, the IMF emphasized that El Salvador is still compliant with its agreements.

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Julie Ziegler, Senior Communications Officer at the IMF, introduced the topic by addressing a public inquiry about El Salvador’s Bitcoin transactions. Rodrigo Valdes, Director of the Western Hemisphere Department, responded firmly: "I can confirm that they continue to comply with their commitment of non-accumulation of Bitcoin by the overall fiscal sector." This statement reassures that no hidden Bitcoin purchases are happening under government control.

The IMF's clarification highlights that while El Salvador remains a pioneer in Bitcoin adoption, it has kept its public finances aligned with international agreements, maintaining transparency and discipline.

El Salvador’s IMF Program Focuses Beyond Bitcoin

Interestingly, the IMF stressed that Bitcoin is not the centerpiece of El Salvador’s economic reforms. Instead, the country’s main focus lies on comprehensive structural reforms, governance improvements, and fiscal adjustments.

Rodrigo Valdes pointed out that El Salvador is undertaking significant initiatives to make government operations more transparent and to strengthen public finances. “The program of El Salvador is not about Bitcoin. It’s much more, much deeper in structural reforms, in terms of governance, in terms of transparency,” he stated.

The current program, valued at $1.4 billion or approximately $3.5 billion when counting potential funding from other international financial institutions (IFIs) is designed to lay the foundation for long-term economic stability. Major fiscal changes are being implemented to attract more private investment and accelerate economic growth.

Valdes also mentioned that a full review of the program is underway. If El Salvador continues its positive trajectory, the country could enjoy broader economic benefits, including stronger investment flows and enhanced credit standings.

Honduras' IMF Success Highlights El Salvador's Path

During the same IMF briefing, attention briefly shifted to Honduras. Rodrigo Valdes praised Honduras for preparing well ahead of global economic challenges, securing a second review agreement with the IMF after improving its financial reserves, reducing inflation, and implementing important fiscal reforms.

This comparison puts El Salvador's current efforts into perspective. Like Honduras, El Salvador is positioning itself to be resilient against economic shocks by focusing on responsible governance and sound economic policies, not solely on crypto innovations like Bitcoin.

Moreover, Rodrigo noted that while Bitcoin adoption draws headlines, the real transformation in El Salvador stems from robust institutional reforms and improved macroeconomic management.

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El Salvador's Stronger Economic Foundation

Thanks to these structural changes, El Salvador stands on a much firmer macroeconomic footing today. The nation’s improved security environment further complements its economic reforms, offering new opportunities for sustainable development.

Ultimately, while headlines often focus on El Salvador's crypto ambitions, the IMF’s latest assessment shows that the country's real story is one of deep reform, fiscal responsibility, and forward-thinking governance.

El Salvador remains committed to its IMF obligations, proving that the nation's Bitcoin experiment doesn't overshadow its broader economic vision.

FAQ

Is El Salvador still buying Bitcoin for its public sector?

No, El Salvador is not buying additional Bitcoin through its public sector. According to the IMF, the country continues to comply with its commitment not to accumulate new Bitcoin holdings as part of its fiscal operations.

What is the focus of El Salvador’s agreement with the IMF?

The main focus of El Salvador’s agreement with the IMF is on structural reforms, improving governance, boosting transparency, and implementing fiscal changes — not on Bitcoin or cryptocurrency expansion.

How does the IMF view El Salvador's economic progress?

The IMF acknowledges that El Salvador has made significant progress through deep economic reforms. These improvements include strengthening macroeconomic stability, enhancing government transparency, and creating a better environment for private sector investment.