The US Dollar in Panama is a Key Asset

The US dollar in Panama is a key asset that has been pegged to the US dollar at parity since the country’s independence in 1903.  US dollar bills are the primary legal tender in Panama, and in practice, the country behaves as a dollarized economy with the Panamanian balboa circulating alongside US dollars at an exchange rate of 1:1. Panama produces its own coinage but uses US dollars for all paper currency

The result of this style of dollarization has been an economy with no foreign exchange regulations and historically low inflation.