Amid the rise of Bitcoin and the election of Trump, the President of El Salvador has proposed for the third time this year to buy back US dollar bonds

Amid the rise of Bitcoin and the results of the U.S. election, Salvadoran President Nayib Bukele has proposed for the third time this year to buy back dollar bonds. According to a statement released on Tuesday, the government proposes to repurchase a series of notes maturing from 2027 to 2034. The total principal amount outstanding of these securities exceeds $2.5 billion. The statement did not specify how the transaction would be paid.

However, an informed source said that debt repurchases depend on new financing, details of which have not been announced because this information is not yet public. Data shows that since Trump won last week's US presidential election, El Salvador's debt return rate has reached 4.7%, outperforming all emerging market countries except Ukraine. Investors have long believed that Trump's second term will help Bukele win support for loans from the International Monetary Fund (IMF). Katrina Butt, an economist at New York United Bank said: "The market views El Salvador as a 'Trump trade', people expect closer personal relations between Bukele and Trump will benefit El Salvador; they are unlikely to have enough cash for such repurchases and may need to enter into market transactions for financing."