Bitcoin Backer El Salvador Is a Top Emerging Markets Trump Trade.

El Salvador's President Nayib Bukele may benefit from a potential Donald Trump presidency, according to bond investors. They believe that Trump's return to the White House could help secure funding for El Salvador from institutions like the International Monetary Fund (IMF), which have been hesitant to lend to a country that uses Bitcoin as its official currency. Dollar bonds from El Salvador have already outperformed since June 27, when President Joe Biden's debate performance led investors to anticipate a higher chance of a Trump win. Bukele has had a strained relationship with the US government, but investors see a friendlier face in the White House as a potential catalyst for an IMF deal. However, the IMF has expressed concerns about El Salvador's use of Bitcoin and has asked the country to abandon it if it wants IMF funding. El Salvador's debt burden is around 70% of GDP, and a deal with the IMF would provide further funding tied to economic reforms. [Extracted from the article]