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Is El Salvador in a Liquidity Crisis?
El Salvador is dollarized. So we have our reserve of currency that's held by the banks, private banks. But because the value of the bonds have fallen so much, they issued a law last year asking for banks to invest their reserve into bonds up to 50% of their reserves. Now, it sounds like they're being held hostage as well. For consumers and customers of banks, I would be worried about my cash held in banking structures.