What did the U.S. agree to do in Nicaragua under Dollar Diplomacy?

Under Dollar Diplomacy, the United States aimed to promote its interests in foreign countries, particularly in Latin America and the Caribbean, by using economic power rather than military intervention. This approach was particularly evident in Nicaragua, where the U.S. agreed to help manage their national debt.

The rationale behind this agreement was to stabilize Nicaragua's economy, which in turn would prevent European powers from gaining influence in the region. By assuming control over Nicaragua's finances, the U.S. sought to ensure that financial stability would create a favorable environment for American investment and trade.

Managing national debt was seen as a more diplomatic and less confrontational way to exert influence than direct military intervention. This strategy aligned with the U.S. government's broader goal of expanding its influence while maintaining stability in the region through economic means rather than through coercive tactics.