Visited November 20/22 -February 14th 2023

Panama is considered a dollarized country and was the second economy in the continent to become a dollarized economy. 

Why does Panama use the US dollar for its currency?

It’s so that Panama can benefit from the stability of the US dollar, as the backbone of the global financial system. For instance, this means that Panama doesn’t have to worry about out-of-control inflation, as a result of changing exchange rates. This hence makes Panama a more attractive investment and tourism destination. As far as so called ‘Canadians’ or Europeans, it does not make traveling/tourism attractive at all, for Canadians traveling to dollarized countries such as; Ecuador, Panama, Costa Rica, Nicaragua, El Salvador, Honduras, Guatemala and so, personally I find and experience to be expensive and too costly. I needed $1000. USD sent to me recently; mid October 2022, it cost me $1600. CAD, EXPENSIVE, just to get money sent to me via Western Union to Boquete, just like that, kissed $600. goodbye, for what…..so that I can sit with an American traveler enjoying a cup of coffee with him and a small bite to eat, while the American pays $10. and for the very same coffee & meal, it costs me $16.