U.S. Dollar Eliminates Risks

Don't worry about changing your money, as the good old American buck is standard throughout the country. ATM machines are available throughout the country if you open a local account. The way to transfer money is to have your pension deposited in a U.S. bank and then open a local account. You then deposit a personal U.S. check into your local account. It takes about 3 weeks to clear. Of course, there are other ways of legally transferring larger sums.

The US dollar has been Panama 's currency since 1904, although it is called the Balboa for nationalistic reasons. As a consequence, fiscal policy is the government principal macroeconomic policy instrument. Because Panama does not have a central bank to print its own currency, government spending and investment is strictly bound by tax and non-tax revenues and the government's ability to borrow. Thus, creditworthiness is linked directly to public finances.

The disadvantage of not having an independent monetary or exchange-rate is not a serious problem for and economy the size of Panama . The advantages more than outweighed the inconveniences. Moreover, in an era of dollarization of other economies, one could say that Panama was the pioneer.

Panama uses the U.S. dollar as its legal tender, virtually eliminating any currency exchange risks to foreign companies operating here. The country has maintained an annual inflation rate of under two percent for the last 40 years, and just 2.3 percent in 2005 – one of the lowest in years. Panama 's economy has become one of the healthiest in Latin America , in spite of the Latin American economic crises. Panama has no restrictions on the outflow of capital or outward direct investment.

Panamanian Currency: Balboa (B/.)

Exchange Rate: US$1.00 = B/.1.00 (fixed exchange since 1904 )

World's Best Access to Capital

Panama is one of the world's most visitor-friendly countries. It has the highest rating for tourist safety from the prestigious Pinkerton Intelligence Agency. Its people are warm, friendly and unspoiled. Panama has always been an international crossroad. Panamanians are accustomed to meeting people from other lands and English is our second language. If you are thinking of retirement, or simply having a vacation residence, don't hesitate to discover this hidden paradise.

Panama had previously been ranked amongst the world's freest economies. Panama is a member of the World Trade Organization (WTO) and is a beneficiary of the Caribbean Basin Initiative (CBI). In 2006 Panama is negotiating a Free Trade Agreement with the United States . Panama has initiated formal negotiations pertaining to free trade agreements with numerous countries and regional groups.

  Panama is one of the world's most visitor-friendly countries. It has the highest rating for tourist safety from the prestigious Pinkerton Intelligence Agency. Its people are warm, friendly and unspoiled. Panama has always been an international crossroad. Panamanians are accustomed to meeting people from other lands and English is our second language. If you are thinking of retirement, or simply having a vacation residence, don't hesitate to discover this hidden paradise.

The Panama Canal

Since the discovery of the Pacific coast of Panama , visionaries dreamed of one day creating a great passageway from the Atlantic to the Pacific, thus avoiding the 12,000-mile journey around the tip of South America . That day finally came in August of 1914, after decades of planning and excavation. Although only 40 miles from shoreline to shoreline, the ingenuity and tenacity of the canal's creators are evident with each and every movement of this magnificent lake-and-lock-type canal. It's bound to be a voyage you will never forget.

The Panama Canal extends approximately 80 km . ( 50 miles ) from Panama City on the Pacific Ocean to Colon on the Caribbean Sea . It is widely considered to be one of the world's great engineering achievements. The United States is the largest user of the Canal in terms of cargo tonnage, as either port of origin or destination, although Asian countries are beginning to close the gap. About 12% of U.S. sea-borne international trade, in terms of tonnage, passes through the Canal annually. Ships bound for Japan from the East Coast of the United States save about 3,000 miles by going through the Canal; ships sailing from Ecuador to Europe save about 5,000 miles .

Around 13,000 ships transit the Canal each year, hauling an estimated four- percent of the world's goods around the globe. About 70 percent of all trade through the Canal are coming from or heading to the U.S. Traffic is projected to increase two percent per year.

Fifty (50) million gallons of fresh water are needed to float one ship through the Canal and all of it is supplied free of charge by forests on the surrounding hillsides, which capture the abundant tropical rains and feed the Canal with rivers.

The Panama Canal Authority has implemented a $1 billion improvement program to maintain the Canal and keep it competitive. The program includes the widening of the narrow Gaillard Cut allowing two-way traffic for even the largest ships and increasing Canal capacity.

Climate:
Panama lies very close to the equator and enjoys a tropical climate Temperatures vary between 80- 90 Fahrenheit (25- 30 celsius ). Humidity is very high. Panama has two seasons. The dry season lasts from January to mid-April and the rainy season from mid-April to December.

International Transportation:

Panama is the international “cross roads” of the western hemisphere. American, foreign and national airlines fly daily between major U.S. , cities, Central, South America and Europe . It is a 2-3 hour flight from Miami , New Orleans or Dallas .

Security & Political Stability

Panama is a Democratic Republic. After the removal of Manuel Noriega in 1989, Panama 's growth has been a steady progression of investments and employment. As in Costa Rica , a national police has replaced the military. There is no political unrest. Since Panama is pursuing international investment and eco-tourism, foreigners are readily welcome. In fact, many new laws creating attractive incentives for the foreign investor have been recently passed. The culture is very similar to the U.S. Many of the same stores and restaurants, such as Price Costco, Bennigan's, TGIF, and others, have branches here. Many people have a big misconception about Panama in thinking it is a jungle with hammocks strung between coconut trees. Panama City is a thriving modern metropolis where you can get most anything you can in the States at a lesser price. Luxury items are readily available.

Panama has the highest rating for tourist safety from Pinkerton Intelligence Services and a low crime rate in general. One of the first things foreigners who live in Panama will tell you is how safe they feel. In Panama City- petty street crimes that hinder tourists in other countries are uncommon. Panama City , like every big city has some neighborhoods best to avoid, but in general you can go about Panama City day and night without worrying. This is true for most of the country with few exceptions.

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