Staff of Reuters Read for 2 minutes (Adds quotes, details) Reuters, SAN SALVADOR, July 1 – President Nayib Bukele of El Salvador requested a 20 percent increase in the minimum wage starting in August, citing a “onslaught of global inflation” among Salvadorans. In a video posted on his Twitter account, Bukele stated that the hike will be subsidized by the government for small and medium-sized businesses for a period of 12 months, removing the need for firms to pass on greater costs to customers. In a six-and-a-half-minute video posted to his Twitter account, Bukele said, “We can do little to change the laws of the world market, but we can do some ethical things.” “That is why, as of this morning, a request has been made to the Council of Minimum Wages to raise Salvadorans’ minimum salary.” Bukele has authorized new food distributions as part of a pandemic social program, which he claims will assist to reduce inflation by reducing demand for food purchases. El Salvador became the first government to recognize bitcoin as legal tender alongside the US dollar earlier this month, with Bukele praising bitcoin’s potential as a transfer currency for Salvadorans living abroad. Bukele’s recent political initiatives, including the replacement of senior judges and the attorney general, have cast doubt on negotiations with the International Monetary Fund for a prospective $1 billion funding program./n
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