August 7, 2025

(Interview of Ovidio Reyes, President of Nicaragua’s Central Bank, by Semyon Senderov, on the RT’s Spanish language “Interview” program at the St. Petersburg International Economic Forum in Russia on June 23, 2025. Translation by Tortilla con Sal.)

Journalist Semyon Senderov: Welcome to a new edition of INTERVIEW. Today we have an opportunity to talk with the President of the Central Bank of Nicaragua, Ovidio Reyes. Ovidio, thank you so much for being with us, for finding the time for us.

First of all I want to ask you about the economic situation of Nicaragua, because as you will know better than anyone, there are new data; in fact, the Gross Domestic Product is growing, it marked a growth of 3%. How do you assess this situation? Does it have only internal effects, or does it also influence, for example, the situation in general, between neighboring countries?

Central Bank President Ovidio Reyes: Yes, the Nicaraguan economy has been growing steadily in the last three years, we believe that the potential growth is around 4%, between 3 and 4%. In other words, that’s where we are. But it is not only economic growth, that is to say, we have declining inflation, the last inflation report is barely 1% year-on-year; that is a very low inflation rate. Likewise, the unemployment rate stood at 3%, which is a rate with which the economy can be said to be stable, and that it is at its potential level.

A set of policies has been implemented to achieve this result, the main one, I would say, has to do with the policy of promoting foreign trade via our exports, and the insertion of our country in different international markets. In fact, we have a good performance of the export sector, which this year has had important growth rates, that are around 8%, growing our exports, and especially a country like ours that produces raw materials for the international market and this has had a positive consequence for our country.

On top of that, public finances are very healthy, unlike other countries that unfortunately have fiscal deficits. Nicaragua has had a fiscal surplus in its budget accounts for the third year running, and this has allowed the public debt to be reduced, our public debt stands at about 54% of GDP. Compared with other countries too, it is a low level of debt, and it is something that we call Fiscal Consolidation, contributing to this result with accumulation of International Reserves and reduction of international obligations, and that strengthens the current account surplus in the balance of payments.

In summary, we have a good macroeconomic context that the economy knows how to take advantage of, and our companies that have joined the international market, are able to generate enough resources, and continue maintaining that result that is positive.

Senderov: I think that, in this context, you mentioned very low inflation levels, many countries would be looking at it with envy. Because this is really an issue that worries many nations, especially now when I think it is very difficult to predict the economic future, if we take into account, for example, the decisions of Donald Trump, the US President who threatens other countries, who applies economic pressure. Do you think this has a serious effect, in general, and how could countries cope with it? How could they avoid that economic worsening, because of his policies?

Reyes: Inflation in Nicaragua is a result of two factors, one is external and has to do with the evolution of international prices, with the pandemic international prices soared and inflation in Nicaragua as well. We even came to have inflation of 11%, as a result of the generalized increases in the prices of the products that we import, which came to grow on average by 22% in our case. That is, there is an international effect of course which affects us and has affected us; but then prices began to decline internationally. We also reinforced ourselves with a set of policies, like the ones I mentioned, and now we have 1% inflation.

At the international level there is talk that the effects of the tariffs implemented by the United States government have not yet been manifested. In fact, there is a waiting period; everyone expects that, and it bears repetition, that there will be a few months, a few months that will elapse before they are reflected in the prices. [Editor’s note: On July 31^st, the Trump administration announced a tariff rate of 18% for Nicaragua.]

While this is happening, we are working on internal consolidation. Of course, measures such as tariffs do have an impact and a repercussion of scale, especially in the case of such a large economy, like that of the United States, and of course that is also a concern. But, in our case, what we did was to promote actions so that the productive sectors did not get complacent and instead sought productivity improvements and production increases so as to compensate for this action, which may have long-term consequences, as economists are pointing out, on prices.

The only way, that at least we see, since we are a small economy and we are not on the scale of industrial nations, is to seek productivity improvements and competitiveness improvements internally to be able to compensate for those tariffs.

Undoubtedly, the most affected countries are going to feel a negative effect on their production, on their jobs; but, well, experience shows that, faced with these shocks, in the end the economy goes through a cycle, and that alternatives will have to be found, and that’s the other part, that I think all nations, all of them, including us, are looking for other markets, because faced with actions of that nature, the only thing that remains for one to do is to look for new markets.

In fact, our participation in the St. Petersburg Economic Forum here is carrying out that action, of looking for alternative markets, because in the face of unchanging policies in the US, we have to look for countries with more stable policies. I even believe that this will lead to the formation of new trade agreements and alliances worldwide, so as to have predictability, which is what all entrepreneurs, investors and traders are looking for, to have predictable policies.

Senderov: You have just made a quite serious warning to other countries, that they should prepare for the consequences that are still to come, is that right?

Reyes: Indeed, I think all countries are doing it, perhaps some more than others, especially those that are going to have a greater impact on their tariffs than the countries in which the tariff was 10%. But regardless of that, we have to look for new alliances and new agreements.

Senderov: Do you think that the other Latin American countries could copy your model of solving this problem, for example, by focusing on issues such as foreign investment?

Reyes: I think so, in fact, all countries have opted for foreign investment, because it is a component that helps to cushion the effects of internal slowdowns as well. We, for example, had a decrease in investment, and yet with all the recent economic results we now have an acceleration of foreign investment in Nicaragua. We went from having a low that brought us foreign investment of just 7% of GDP, now to a foreign investment equivalent to 14% of GDP. In other words, this helps us to have fresh resources, but above all to continue accumulating capital, which is what is needed to be able to export and produce more.

Senderov: But it’s not just about the conditions now, about Donald Trump’s decisions, for example. The case of Nicaragua is that its institutions suffer strong sanctions by the United States and the European Union. What are Nicaragua’s strategies to deal with them, and maybe it could work for other nations as well?

Reyes: You see, the strategy is to have flexibility; that is, one cannot impose rigidities in the face of sanctions; that is to say, one must let the economy flow, let the markets flow, let payment systems develop, and let citizens find alternatives and solutions. In fact, it is not a good action to move to control the markets; it is quite the opposite, in a framework of more flexibility, that allows those trade channels that were closed to find new routes, especially those that are in the private sector, because the decentralized economy today works very well. So, what can be done from the Government point of view is the promotion of trade agreements and treaties, so that then the economy can seek its channels.

Senderov: What is the relationship of the Central Bank of Nicaragua with international organizations, for example, such as the International Monetary Fund?

Reyes: Well, Nicaragua signed the IMF Agreement and is part of the organization in terms of the share capital it owns in that Institution. Therefore, we have the responsibility and the rights also acquired by being a member of the Fund, to request access to its financing, but also to have communication with them. We have a fluid communication with the International Monetary Fund in economic matters so that their respective evaluations are carried out. In fact, the last assessment they made of the country’s economy was positive, and the exchange of information is part of that relationship.

Of course, the IMF as an institution has an important role at the global level as a stabilizer; there are situations in which sometimes that function is not fully fulfilled. But, yes, theirs is an important opinion which at least in the case of Nicaragua is quite representative and is listened to by investors; so, we try to maintain the reputation that we have had and that we have achieved based on our own effort.

Senderov: It is important that you now differentiate between one case and another, so to speak, because the IMF in particular has often been severely criticized, for example, sometimes for its politicization which is one opinion; sometimes for practically choking other nations with its aid, but also with the impositions of its financial policies. In your opinion, is it possible for this type of body to completely abstain from politics?

Reyes: It’s a bit complicated to think that an international institution is going to be totally isolated from everything else, isn’t it? It is difficult, but it is the ideal, because according to the constitutive agreement of that body, it signs economic agreements, not political agreements. In fact, in the design of the international organizations, it is the United Nations that is the political body while the IMF and the World Bank are financial arms that should support all countries equally.

This is something that we have discussed frankly with the International Monetary Fund, and we have asked them, and requested that the dialogue be of an economic order, of an economic nature. Because in the economic order we understand each other very well; that is, they ask, for example, for economic stability; well, we agree to ensure economic stability; financial stability, banking stability, and in fact, we actively deliver that banking and financial stability.

So, the well-established slogan at the IMF of fiscal consolidation is fiscal surplus; then, we say, perfect, we are going to ensure that and we agree that a country needs fiscal consolidation and fiscal surplus. We agree on that kind of thing. But if we are then going to political matters, I think they do not have the expertise to talk about these issues.

Senderov: I understand that the Central Bank also plays a very important role in helping the development of rural areas, areas that are difficult to access. What are the strategies that your institution is taking precisely?

Reyes: Well, the Central Bank has been promoting payment systems, using financial technologies, for retail payments; in fact, we have development plans that we have been discussing with the country’s financial system to be able to expand these services to new service users, to the largest possible number.

In fact, we have virgin terrain, because in Nicaragua, the degree of financial depth is still low compared to other countries. That is to say, we have about 22% of the population with access to formal financial services and the rest do not have it. So, for us this is a strategic issue—to be able to provide financial services. We have raised this very successfully with the country’s financial institutions and we are already developing solutions.

The banks are currently designing payment services, transfer services, and we are going to do our own work from the Central Bank, to be able to provide this access to the entire population, as far as possible. In addition, we have already had an 80% degree of depth of cellular telephony; if we look at it mathematically, 80% access to cellular telephony, 20% access to financial services, then we are talking about 60% of the population that could access financial services through cellular technology.

We are all making this effort and we would hope that, with that factor, and in addition to other indicators, for example, access to energy in Nicaragua is fantastic…. We have about 90% access to electricity, and that, combined with cellular telephony, is a promising field. I think that in the coming years we will see a financial deepening in Nicaragua in that sense.

Senderov: I imagine that now attention can also be diverted a little, because if we see, for example, the news of recent days, global conflicts, we talk for example about the conflict that broke out between Iran and Israel, this could really affect the economic world.

Reyes: Indeed, a conflict of this nature and scale can have consequences; however, countries need to continue to have communication and means of payment. Regardless of what may happen in the rest of the world, it does not prevent us, with our own effort and resources, and we have to continue with that development.

Senderov: But the consequences could reach all the way to Latin America.

Reyes: Agreed, but in the long run also, internally as a country, as a nation, we need to continue developing financial services, anyway. In other words, it is something that we are not going to stop doing because of world conflicts. I have already explained the numbers, we are talking about the possibility that 60% of the population has access to financial services through electronic means, we cannot give up on that, regardless of what happens. The truth is that I am talking, in this sense, about the internal economy, not about the external economy; so, in that sense, we are going to continue working.

As for transactions and payments, of course, international payments are going to be more complicated in the face of such an event, because all these issues of sanctions and threats of unilateral actions, of course that can generate a brake on activity. But, we have seen that in the face of these difficulties we have to innovate, we have to think about alternative ways of doing things, and it has worked for us. From the different negative events that we have affected us as an economy, we have tried to look for the advantages, and draw on our strengths so as to be able to move forward.

Senderov: Speaking of the threats, because you already mentioned some in your opinion, in general, what are the threats for Latin America?

Reyes: At the moment I think the two most general ones have to do with trade issues, the unpredictability issues now of unstable trade tariffs, that is an issue that worries everyone. In fact, in the last meetings we have had with Central Bank Presidents, that is the topic that is being discussed. Even in our talks with the International Monetary Fund, that is the issue.

The trade issue is a very relevant issue, and the other one is the migration issue; in our case, Central America is a large recipient of family remittances, the flow of foreign currency from all citizens residing in the United States who receive money from their relatives. In recent legislation proposed there in the United States, there was a 3.5% tax on all remittances. So, these are two issues at least in the case of our region, Central America, even Mexico. They are relevant issues that need to be addressed, they are the main risks for us.

The main risks that we see, in the case of our countries, come from the international context, rather than from the internal context. Because Latin America has made great progress in economic stabilization; there are countries that have their particularities, but after many years of instability, Latin America has a good context in terms of stability. So, anything that disturbs things, for example, these conflicts, anything that disturbs international trade, is a matter of legitimate concern of our country.

Senderov: You were able to be present at the St. Petersburg International Economic Forum, how do you assess the results of this event and whether it was possible to reach some kind of agreements, because we have already seen it in numerous meetings precisely with Latin American representatives.

Reyes: I think that all these spaces are important for what we were talking about, to look for alternatives for our countries, and we see that there is also a lot of interest from national investors from Russia in this event, but also from the rest of the world, I understand that there are 140 countries participating here.

At least in our case we have fulfilled an important agenda, and agreements have been reached in different areas of work, especially in health care and in education. I think it is also an opportunity, of course, for Russia to show its economic muscle, because it has a strong economy in the sense that it has managed to overcome all obstacles and is making progress.

Senderov: And it is the most sanctioned country in the world.

Reyes: And we must learn from that experience, because nations like ours face all these threats, and it is important to know how they are managed, to know about policy, to learn from the entrepreneurial spirit so as to be able to replicate these actions in countries like ours and to be able to continue reaping success in economic development.

Senderov: When talking about alternatives, special attention is always paid to the BRICS, and in fact there is a lot of talk in the Forum on this. How do you rate this instrument now?

Reyes: I think it is an excellent multilateral instrument; there is political will on the part of the countries that make up the BRICS, to develop a new trade scheme. That is welcome, we see an opportunity there, because, in addition, there is mention of an alternative payment platform to the existing ones, and if we believe in the competitive world, the more offers there are of payment systems, and the more offers there are of commercial agreements, then there is more competition, and things should be better.

It is an opportunity for many countries. In fact, there is a founding country from Latin America in the BRICS, such that Latin American countries can also participate in this organization in order to have the benefits, not only of payment systems and trade, but also of the financing that could come from the New Development Bank (NDB) that was founded by the BRICS. It is a very solid initiative of emerging nations with large economies, with a lot of trade and big populations, which I think Nicaragua is interested in being a part of.

Senderov: From the US they even sometimes make threats, they throw out these comments that they do not want others to participate in the BRICs. Does that make you feel threatened?

Reyes: For the meantime the US position does not affect us. And I would say sometimes there are reactions that are exaggerated. Generally, I think that competition is not to be feared; on the contrary, you have to accept it, one should not feel challenged because a rival appears since together with them, we can offer a service, and in any case the world is growing and there are constantly new clients. So, one more member added to the group of bidders, is not going to hurt you, on the contrary, it is going to force you to compete better.

Senderov: So, would you say that a new world order is forming right now?

Reyes: Of course it is forming, because when there are actions that try to holding back economic development, one has to look for new alliances, new methods, and new ways of doing things; it is inevitable that this will happen.

Senderov: Thank you very much for your time and for this Interview.

Briefs

By Nan McCurdy

Thousands Celebrate “Minguito”

Thousands of Catholic followers participated in the start of the ten-day celebration in honor of Saint Dominic (Santo Domingo) of Guzmán, the patron saint of Managua, at the beginning of the most popular patron saint festivities in the country. The tiny statue of the saint, measuring only seven inches in height and protected by a glass case, left its usual sanctuary in a church at Las Sierritas in the southern hills of Managua and was transferred to the Church of Santo Domingo at the north end of Managua near the Eastern Market and Lake Cocibolca. On August 10, with another festival, Santo Domingo will be moved back to the church in southern Managua. See photos: https://radiolaprimerisima.com/cientos-de-peregrinos-celebraron-imagen-de-santo-domingo-de-guzman/ (La Primerisima, 2 August 2025)

New 270,000 Square Foot Hospital in Ocotal

The Héroes de Las Segovias Hospital consists of seven buildings covering a total area of 270,000 square feet, with a capacity of 236 beds. The hospital, in the city of Ocotal, will offer physical medicine services, oncology and chemotherapy, a nephrology unit with dialysis and hemodialysis, a pain clinic, endoscopic services, rehabilitation with hydrotherapy, maxillofacial surgery, outpatient consultations, emergency care, hospitalization, an obstetrics unit, neonatology, and a pharmacy. See photos: https://radiolaprimerisima.com/nuevo-hospital-en-ocotal-tiene-25-mil-metros-cuadrados/ (La Primerisima, 2 August 2025)

Nurseries Produce One Million Plants

On August 1 local authorities reported the production in the country’s nurseries of one million new plants between January and July this year. During the week of July 27 to August 1, seven nurseries were expanded in the municipalities of Morrito, El Castillo, San Carlos, La Concordia, La Libertad, San Miguelito, and San José de Cusmapa, bringing the total number of expansions and improvements to 47. (La Primerisima, 1 August 2025)

National Assembly Approves Law Strengthening Border Security

On August 5 the National Assembly approved a law establishing a border territory from the international borders to 15 kilometers inside national territory. Deputy Edwin Castro explained that the new law strengthens the legal framework and guarantees sovereignty, territorial integrity, and national security. “The new law clearly defines the protection of our border to prevent illegal transactions committed internationally by organized crime, and supports our principles of self-defense. It establishes that the entire border area delimited to 15 kilometers from the border will be the exclusive property of the Nicaraguan state, which does not affect the Nicaraguans who live there,” he explained. See law: https://radiolaprimerisima.com/asamblea-aprueba-ley-que-fortalecera-seguridad-en-fronteras/ (La Primerisima, 5 August 2025)

Universities to Have Placements for 60,000 New Students in 2026

Nicaragua’s universities expect to accept 60,000 new students for the next academic year. The 60,000 placements are for new students, primarily high school graduates who will begin their university studies in February of 2026. Bismarck Santana, technical secretary for university affairs, said on Aug. 5 that more than 240,000 students across the country have now returned to second semester classes which began in July.  Although the official enrollment period for 2026 is now closed, universities continue to handle special cases of young people who had difficulty registering. Santana said that the University in the Countryside program currently serves 38,000 students in rural areas, 60 percent of whom are women. He added that, as part of comprehensive training, content on history and national Identity, as well as English are being incorporated into more than 30 percent of degree programs, in accordance with the National Education Strategy. (La Primerisima, 5 August 2025)

Workers Reaffirm Support for the Sandinista Government

The 15th National Congress of the Sandinista Workers’ Union (CST) reaffirmed its historic commitment to the Sandinista Popular Revolution and to defending the rights and welfare of workers, said Pedro Ortega, who was re-elected as secretary general of the CST Executive Committee. “As workers, we want to reaffirm that commitment to the Revolution and also to Comandante Daniel [Ortega] and Compañera Rosario [Murillo], who have supported the workers and have also supported the struggles of the Nicaraguan working class,” he said.

Also at the CST Congress, the president of the Central Bank of Nicaragua, Ovidio Reyes presented an optimistic outlook for the national economy, highlighting the achievements made thanks to policies aimed at inclusive growth. He noted that Nicaragua maintains sustained macroeconomic stability, with average economic growth of 4%, a pace which is expected to continue in the coming years. “The country’s economic dynamism is reflected in the 10% growth in exports, driven by the quality and competitiveness of Nicaraguan products. “Nicaraguan products are reaching such a level of quality and competitiveness that it is driving the export sector,” he said. “There is a lot of entrepreneurship in our country. That is a new reality,” said Reyes, highlighting that this [small and medium business] sector, together with formal jobs, contribute significantly to economic development. He emphasized the commitment to continue consolidating these conditions to ensure an increase in real wages, maintain stable inflation, reduce the unemployment rate, and continue the fight against poverty. (Informe Pastran, 4 August 2025)

Fairs and Fair-Trade Events Generate US$100,000 in Five Days

From July 28 to August 3, the Ministry for the Promotion of Entrepreneurship organized more than 90 fairs, markets, farmers’ markets, and fair-trade events nationwide, generating more than US$100,000 in sales. 1,470 entrepreneurs, artisans, merchants, and SMEs (small and medium scale businesses) participated during this period. The main products offered were handicrafts, leather products, boots, hats, bags, textiles, clothing, natural medicine, food, traditional desserts and sweets, vegetables, and jewelry, among others. See photos: https://radiolaprimerisima.com/emprendimientos-generaron-3-6-millones-de-cordobas-en-ventas/ (La Primerisima, 4 August 2025)

New Streets and Roads Built So Far in 2025

The country’s various municipalities have improved and built 2,156 streets and 2,636 kilometers of roads so far this year. During the week of July 28 to August 2, municipalities inaugurated 46 new streets and 65 kilometers of improved roads in

Larreynaga, Diriomo, Rivas, Matagalpa, El Cuá, Managua, San Marcos, Jinotepe, Nindirí, Cinco Pinos, Río Blanco, San Carlos, Dolores, El Crucero, Bilwi, Wiwilí de Nueva Segovia, and San Nicolás. See photos: https://radiolaprimerisima.com/se-han-construido-2156-calles-y-2636-kilometros-de-caminos/ (La Primerisima, 4 August 2025)

International Arts, Culture, and Food Festival

The Nicaraguan Institute of Tourism (INTUR) inaugurated the 11^th edition of the International Festival of Arts, Cultures, and Food of Our Peoples on August 2, showing aspects of many different countries’ roots, history, and culinary richness. Attendees are finding a wide variety of cuisine, prepared on the spot, as well as aspects of the culture and traditions of each country. The co-director of INTUR, Mara Stotti, said that this “event highlights the diversity of traditions, gastronomy, and cultural expressions of 40 countries. Today, the Olof Palme Convention Center once again becomes a meeting point; each country showcasing its roots, history, and culinary wealth. This is a window to the world, where through dance, music, and food, we are transported to different corners of the globe,” she said. Camila Ortega Murillo, Coordinator of the National Commission for the Creative Economy, greeted the accredited diplomatic corps and all the countries participating with their gastronomic and cultural offerings. She said that over the next two days, they will welcome Nicaraguan families and visitors from around the world who come to taste the food, but also to experience the culture and art of all the countries participating. See photos: https://radiolaprimerisima.com/arranca-festival-internacional-de-las-artes-culturas-y-gastronomia/ (La Primerisima, 2 August 2025)