Visualizing Nicaragua's Dependency in US Gold Export

The US has found a new way to inflict pain on Nicaragua's president, Daniel Ortega, and his increasingly authoritarian regime — gold sanctions. Even though Nicaragua is not one of the top gold producers in the world, its economy is highly dependent on its trade with the US. Just how dependent? OEC data shows that its gold exports to the US represented 13% of Nicaragua's entire export value in 2020.

And it doesn't end there. Last year, the country reached a new record high of 348K ounces of gold exported, hoping to double that in the next five years. Meanwhile, the sanctions are unlikely to have a noticeable effect on the US economy since they only represented 0.03% of all US imports in 2020.

Why is Ortega in trouble with the US? The list of his sins is long:

He used to rob banks

His stepdaughter alleges he sexually abused her

He forcibly rose to power, starting in 1979 with the Sandinista Revolution

His police force and paramilitary groups have killed hundreds of civilians during numerous protests, often using ‘weapons of war’

Since 2006, he's been holding to his presidential office for dear life with corrupt and violent tactics, including the illegitimate arrest of five incumbents in a single day last year

The last three points have prompted US sanctions to Nicaragua on and off since 1979 under Ronald Reagan. President Trump signed the Nicaragua Human Rights and Anticorruption Act, which opposed the country's loans from international financial institutions.

President Joe Biden signed the newest executive order late last month, which allows the US to ban companies from trading gold with Nicaragua. It remains to be seen to what extent it will use that power and how quickly Nicaragua could find other buyers for its gold. More importantly: what will it take to take out Ortega’s bloody regime? The US could potentially come with many more sanctions, since it accounts for 58% of Nicaragua’s entire export value.

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