President of El Salvador Nayib Bukelemade the statements on Twitter on Sunday, January 17, in response to a warning from rating agency Moody’s. However, Moody’s confirmed that the ratings of the Central American country remained unchanged.
President Nayib Bukele shared a message on Twitter that means “BREAKING: EL SALVADOR DGAF” meaning “I don’t care”. Chairman Bukele responded to a tweet from Investing.com.
BREAKING: EL SALVADOR DGAF https://t.co/VuJ25PcvQL
— Nayib Bukele 🇸🇻 (@nayibbukele) January 17, 2022
On Tuesday, January 18, moody’s The investor service told Bloomberg News that President Bukele took the false downgrade tweet as fact. As of now, El Salvador’s rating is reportedly unchanged from last July. In July 2021, Moody’s downgraded El Salvador to CCA1, indicating a high risk of default on its debt.
Moody’s: El Salvador’s BTC Holding Is A Risky ‘Bet’
In Moody’s report, Bitcoin trading El SalvadorHe talked about the risks posed by the country’s credit rating.
Last week, the rating agency told Bloomberg that the Central American nation’s Bitcoin holdings “definitely add to its portfolio of risk”, especially for “a government that has struggled with liquidity pressures in the past.”
In September last year, the Bukele government adopted Bitcoin as a legal currency along with the US Dollar. Since then, the country has 1391 BTC purchased through public funds, and Bukele continues to aggressively accumulate Bitcoin. After Bitcoin’s latest price drop, El Salvador has lost a fortune of $12 million.
El Salvador bonds were the worst performing for 2021 among other emerging markets. The country’s overseas bonds due in 2050 fell to an all-time low of 53.6 cents on Tuesday (January 18th). In addition, the country is issuing Bitcoin Volcano Bonds to take advantage of the excess geothermal energy it produces.
President Bukele has been harshly criticized by world leaders and distinguished economists for his decision. However, Ark Invest CEO Cathie Wood praised Bukele’s Bitcoin push, noting that it provides new financial opportunities to the citizens of El Salvador that they did not have before.