Skip to main content

Biodiversity of Panama

Written by spotlight on . Posted in Environment, Panama.

Panama, a country located in Central America, is well-known for its incredible biodiversity. Located at the intersection of North and South America, the country’s unique geographic and climatic conditions have resulted in a rich variety of flora and fauna. The formation of the Isthmus around three million years ago played a significant role in shaping the biodiversity of Panama, serving as a bridge for species migration between the two continents.

Geological Influence on Panama’s Biodiversity

The Isthmus of Panama’s emergence has not only connected North and South America but also separated the Atlantic and Pacific Oceans. This geological event, known as the Great American Biotic Exchange, allowed species to migrate between the continents, drastically influencing Panama’s current biodiversity. Additionally, the separation of the oceans led to changes in global ocean currents, which in turn affected global climate patterns. These factors combined to create a multitude of habitats within a relatively small area, fostering an environment rich in species diversity.

Biodiversity “Hotspot”

Panama is considered a biodiversity hotspot due to its wide range of ecosystems and species. The country’s diverse climate, soil types, and ecosystems, including 13 life zones and six types of vegetation, contribute to this status. Forests cover over 65% of Panama’s territory, playing a crucial role in maintaining ecological balance and serving as indicators of healthy ecosystems.

Provinces such as Bocas del Toro and Darién are notable for their high levels of biodiversity. Panama is home to approximately 1,300 endemic species, including various birds, mammals, reptiles, amphibians, freshwater fish, and plants. This level of endemism underscores the uniqueness of Panama’s biodiversity and its importance for global conservation efforts.

Key Biodiversity Facts:

  • 9% of the world’s known bird species
  • 2.3% of reptile species
  • 3.4% of amphibian species
  • 4.8% of mammal species
  • 220 freshwater fish species
  • 1,157 marine fish species
  • more than 1500 species of butterflies
  • more than 2500 species of moths

Birds of Panama

Panama, with its diverse ecosystems, hosts unique birds such as the Resplendent Quetzal and the Harpy Eagle. The Darién National Park is a prime birdwatching spot, known for its endemic and migratory bird species. This park offers a habitat for an incredible array of birdlife, contributing significantly to Panama’s status as a global birding destination. The presence of these birds highlights the ecological richness and the importance of conservation efforts in the region

Reptiles of Panama

The country’s reptile diversity includes the Panama Leaf-Toed Gecko and Cope’s Arboreal Alligator Lizard. Bocas del Toro is a special hot spot for spotting these reptiles in their natural habitat. Conservation efforts here are crucial to maintain the delicate balance and protect these unique species from habitat loss and other environmental threats.

Unique Amphibians

Panama’s amphibian population features species like the critically endangered Panamanian Golden Frog (Atelopus zeteki). The Chiriquí Highlands are renowned for their rich amphibian diversity. These highlands offer a cool, moist environment ideal for amphibians, which is increasingly rare due to climate change and deforestation. Protecting these areas is vital for the survival of these unique species, many of which are endangered or have very limited ranges.

Exciting Mammals

The Coiba Island Howler Monkey and the Azuero Spider Monkey are a special sight to catch. A small group of the Azuero Spider Monkey is known to be living in the remaining dry forest around Playa Venao. Closer to the city we recommend visiting the Soberanía National Park and even a morning hike at Ancon Hill will allow to experience closely related monkey species. Some of the largest mammals in Panama are small deer, while predators like the jaguar, jaguarundi and ocelot are extremely shy and keep away from human developments.

Freshwater Fish

Panama is home to endemic fish species like the Amatitlania altoflava and Amatitlania nanolutea, both from the Cichlidae family. Meanwhile, the invasive peacock bass (Cichla ocellaris) offers great fun for sports fishing but has nearly wiped out other native fish species due to its aggressive nature and rapid population growth.

Marine Fish

In Panama, commercial fishing is restricted to protect marine biodiversity, allowing only artisanal and sports fishing. Coiba National Park and its Special Zone of Marine Protection is a UNESCO world heritage site in the Gulf of Chiriqui. The Pearl Islands are also famous for whale watching during the whale season, from mid-July to late September. Due to its prestine waters and high biodiversity the Panamanian waters are renowned for their world-class bill fishing and spear fishing opportunities.

Butterflies

With over 1,500 species, Panama is home to six species of Morpho butterflies, including the well-known Blue Morpho (Morpho peleides), Morpho amathonte, and Morpho cypris. They are famous for their metallic iridescent blue wings, which are an amaying sight when hiking the lush tropical forests. The Metropolitan Natural Park only minutes form the city is already a great area to observe them year around, with several peaks of sightings depending on the species.

Moths

Panama hosts over 2,500 species of moths, including the Central American Silkmoth and Aellopos titan. The forests around the Gamboa Rainforest Resort are easily accessible to get a sight of moths at night. This area, rich in both flora and fauna, provides ideal conditions for a wide variety of moths.

Flora in Panama

Panama ranks among the top 25 countries globally in terms of flowering plant species diversity. The country boasts around 10,444 species of flowering plants, accounting for 3.3% of global plant diversity. Additionally, Panama contains 7.1% of the world’s ferns.

Magnificent Trees of Panama

You will find some of the most unique and valuable tree species, including the Almendro (Dipteryx oleifera), known for its extremely hard wood and importance to the ecosystem as a habitat for the Great Green Macaw. The Cocobolo (Dalbergia retusa) is prized for its beautiful, dark-colored wood used in fine furniture and musical instruments. The Espavé (Anacardium excelsum), a massive canopy tree, plays a crucial role in maintaining forest biodiversity. The Cedro Espino (Pachira quinata) is valued for its durable wood and is often used in construction. Lastly, the Balsa (Ochroma pyramidale) is known for its lightweight wood, essential in model building and is a tree to watch out for as even branches will fall easily during heavy rain.

Flowering Trees of Panama

Panama features a stunning variety of trees that flower in bright colours (January-April). The Tabebuia rosea, also known as the Pink Poui or Rosy Trumpet Tree creates a beautiful spectacle across the country with it’s bright pink flowers. In terms of yellow flowers, the Tabebuia guayacan, or Yellow Poui, is easy to spot with its bright yellow blooms in March, adding splashes of color to the forest, but can also be found in Parque Omar and Camino Real de Bethania. Unfortunately the bloom only lasts a couple days for each tree.

Biodiversity Research

The Smithsonian Tropical Research Institute (STRI) is a key player in Panama and enjoys a high reputation as a primary research facility for tropical ecosystems. Barro Colorado Island, part of STRI, is one of the most studied tropical forests globally. Research here covers climate change, species interactions, evolution and conservation, emphasizing the importance of tropical rainforests in maintaining global biodiversity.

Forest Conservation Efforts

Panama’s forests play a vital role in carbon sequestration, biodiversity conservation, and water regulation. Various companies and groups are the primary stewards of these forests working closely with indigenous populations, contributing significantly to the country’s conservation efforts. Panama has committed to reforesting more than 50,000 hectares in the coming years to maintain its status as a green nation and preserve its water sources.

Panama: A Carbon-Negative Country

At the 2021 United Nations Climate Change Conference (COP 26) in Glasgow, Scotland, Panama was recognized as one of the few carbon-negative countries globally. The nation absorbs more greenhouse gases than it emits, thanks to its extensive forest cover, which spans approximately 4,925,789 hectares, and over 165,000 hectares of mangroves.

Hiking Trails and Eco-Tourism

Panama offers numerous hiking trails that showcase its diverse ecosystems. These trails vary in difficulty and provide opportunities to experience the country’s unique flora and fauna. Some popular hiking destinations include:

  • Chucanti Natural Reserve, Darién
  • Darién National Park, Rancho Frío Station
  • Cerro Jefe, Eastern Panama
  • Camino de Cruces National Park, Northern Panama
  • Pipeline Road or Camino del Oleoducto, Gamboa-Colón
  • Barro Colorado Island, Gamboa-Colón
  • Altos de Campana Natural Park, Western Panama
  • Cerro Gaital, Anton Valley, Coclé
  • Los Picacho de Olá, Coclé
  • Omar Torrijos National Park, Herrera, Coclé
  • Santa Fe National Park, Veraguas
  • Peña Blanca Mountain or Sacred Mountain, Ngäbe Buglé Comarca
  • Barú Volcano National Park, Chiriquí
    • Climb to the Volcano’s Summit
    • Los Quetzales Trail
  • La Amistad International Park, Pianist Trail, Chiriquí

Popular Hiking Destinations to enjoy the Biodiversity of Panama

  1. Chucanti Natural Reserve, Darién
  2. Darién National Park, Rancho Frío Station
  3. Cerro Jefe, Eastern Panama
  4. Camino de Cruces National Park, Northern Panama
  5. Pipeline Road, Gamboa-Colón
  6. Barro Colorado Island, Gamboa-Colón
  7. Altos de Campana Natural Park, Western Panama
  8. Cerro Gaital, Anton Valley, Coclé
  9. Los Picacho de Olá, Coclé
  10. Omar Torrijos National Park, Herrera, Coclé
  11. Santa Fe National Park, Veraguas
  12. Peña Blanca Mountain, Ngäbe Buglé Comarca
  13. Barú Volcano National Park, Climb to the Summit, Chiriquí
  14. Barú Volcano National Park, Los Quetzales Trail, Chiriquí
  15. La Amistad International Park, Pianist Trail, Chiriquí

Conclusion

Panama’s incredible biodiversity is a result to its unique geographic location and environmental conditions. The country’s extensive forest cover, rich flora, and diverse fauna make it a vital region for global biodiversity. Conservation efforts by private organizations, research institutes and the government are essential for maintaining this biodiverse haven. With its commitment to sustainability and eco-tourism opportunities, Panama is becoming an increasingly more attractive location for tourists to enjoy its nature.

Learn more about Panama and explore options to stay there permanently.

The Economy of Panama

Written by spotlight on . Posted in Economy, Panama.

Panama leads economic development in Latin America, marked by its unique geographical location, extensive infrastructure, and robust financial system. The economy of Panama is strong in its key sectors and offers trends, challenges that offer many opportunities for motivated immigrants.

Strategic Territorial Advantage

Panama’s strategic geographical location underpins its major economic asset, the Panama Canal. This engineering marvel significantly boosts global maritime trade by linking the Atlantic and Pacific oceans. The canal not only generates direct revenue from tolls but also enhances Panama’s role as a global logistics hub.

Diverse Economic Sectors

Services Sector

The service sector dominates Panama’s economy, representing over 65% of the GDP. Within this sector, finance, banking, and the Panama Canal play pivotal roles. The expansion of the Canal in 2016 has further boosted the country’s logistics and transshipment capabilities, attracting increased global maritime traffic.

  • Finance & Banking: The financial sector thrives due to favorable banking regulations and a dollar-based economy, minimizing currency exchange risks.
  • Logistics & Maritime: The Canal’s expansion has strengthened Panama’s status as a logistics hub.
  • Tourism: Growing interest in Panama as a tourist destination adds to the service sector’s contribution.

Financial Services

Panama’s robust financial services sector benefits from lenient banking regulations, encouraging international financial institutions to operate within its borders. The use of the U.S. dollar also stabilizes the financial environment.

  • Banking: Many international banks operate in Panama, driven by its regulatory advantages.

Agriculture and Manufacturing

While not as prominent as other sectors, agriculture and manufacturing still contribute to Panama’s economy.

  • Agriculture: Key products include bananas, sugar, coffee, and beef.
  • Manufacturing: Relatively small, focusing on clothing, cement, and paper products.

Economic Growth and Challenges

Panama has enjoyed substantial economic growth over recent decades. Key drivers include the Canal’s expansion, investment in infrastructure, and a stable macroeconomic environment. Despite these advancements, here are a few challenges:

  • Income Inequality: Economic growth has not uniformly benefitted all social strata, leading to income disparities.
  • Labor Market: A tight labor market poses challenges for sustained economic growth.
  • Over-reliance on Services: The economy’s heavy reliance on the service sector can be a double-edged sword.

Government Policies and Budgets

The Panamanian government has implemented several policies aimed at boosting economic growth and addressing social inequalities. Key initiatives include:

  • Infrastructure: Projects like the Panama Metro are underway and Tocumen International Airport expansion has been completed.
  • Financial Reforms: Measures to enhance transparency and combat money laundering have been introduced.
  • Special Economic Zones (SEZs): These zones are designed to attract foreign investment by offering favorable business conditions.
  • Privacy Policies: In the next years it could be expected that the Panamanian government will update their Privacy Policies to match modern standards, making it more attractive for international tech companies.

Future Ideas and Opportunities

Panama’s economic future looks promising, with several initiatives set to drive sustained growth:

    • Digital Technology: Plans to become a regional hub for digital technology could spur further economic expansion.
    • Enhanced Regulatory Framework: Improvements in this area could attract more international investors.
    • Infrastructure Development: Continued investments in infrastructure will support long-term growth. Notable projects is the Ciudad de Salud, a prospective 4th bridge over the canal and a possible train line across the country.

Conclusion

Panama’s economy leverages its strategic location, diverse sectors, and proactive government policies to secure its role on the global stage. While challenges such as income inequality and labor market constraints persist, the country’s economic outlook remains positive. Ongoing investments in infrastructure, financial transparency, and efforts to diversify the economy will continue to bolster Panama’s economic standing.

References

Panama Currency: The US Dollar

Written by spotlight on . Posted in Economy, Business, Panama.

The Republic of Panama has a unique financial characteristic that sets it apart from many other nations. Since the construction of the Panama Canal in the early 20th century, Panama has used the U.S. dollar alongside its national currency, the Balboa. This practice has contributed to economic stability and controlled inflation, fostering a conducive environment for business and trade.

Benefits of Using the U.S. Dollar in Panama

Economic Stability

  • Inflation Control: By adopting the U.S. dollar, Panama has mitigated hyperinflation risks that many Latin American countries have faced.
  • Investment Confidence: Investors find the Panamanian market less volatile and more predictable due to its dollarized economy.

Read more about the stability and overall performance of the Panamanian economy in this dedicated article.

Simplified Trade

  • International Trade: Using the U.S. dollar streamlines export and import processes, attracting international businesses.
  • Tourism: Tourists from the United States and other countries using the dollar find it easier to conduct transactions without currency conversion hassles.

Financial Services Sector

  • Banking Efficiency: Panamanian banks benefit from the dollarized economy, making international transactions more straightforward and efficient.
  • Exchange Rate Risk Elimination: The absence of currency fluctuation with the U.S. dollar enhances stability in financial operations.

The Panamanian Balboa

Coin Circulation

  • Coin Denominations: The Balboa circulates only in coin form with denominations equivalent to the U.S. dollar; 1, 5, 10, 25, and 50 centavos, and one Balboa.
  • Interchangeability: Balboa coins can be used interchangeably with U.S. coins in everyday transactions.
  • Coin Minting: Panama does not have a national mint, so Canada mints its coins.

Historical Context

The Balboa is named after the Spanish explorer Vasco Núñez de Balboa, the first European to see the Pacific Ocean from the New World in 1513. His exploration and conquests were pivotal in establishing Spain’s influence in the Americas. To honor his contributions and lasting impact on Panama’s history, the country named its currency the Balboa when it adopted its national currency in 1904, following its independence from Colombia and the establishment of the Republic of Panama.

Panama Canal Influence

  • Canal Construction Period: The use of the U.S. dollar began during the construction of the Panama Canal between 1904 and 1914. This integration helped stabilize the economy during a period of rapid development.
  • Economic Platform: The dual-currency system established a firm economic platform, steering Panama through various economic cycles with relative stability.

Governance and Regulation

  • Government Policies: The Panamanian government regulates monetary policy efficiently, easing potential distortions between the two currencies.
  • Financial Oversight: Continuous oversight ensures smooth operations and maintains public confidence in the financial system.

Implications for Emigrants

Ease of Financial Transition

  • Emigrants from the U.S. experience seamless financial transitions with familiar currency.
  • Simplified banking procedures for opening accounts and conducting transactions.

Cost of Living

  • Goods and Services: Prices for goods and services are relatively stable due to the absence of currency fluctuation.
  • Real Estate: Real estate transactions are straightforward, with properties often priced in U.S. dollars.

Employment and Business

  • Job Market: A dollarized economy attracts international companies, creating diverse job opportunities.
  • Entrepreneurship: Business operations, including capital raising and trade, are simplified when dealing with a globally accepted currency.

Challenges and Criticisms

Economic Dependence

  • Limited Monetary Policy Tools: Panama cannot engage in independent monetary policies like adjusting interest rates.
  • Economic Vulnerability: Panama’s economy can be affected by U.S. economic policies and inflation rates.

Currency Supply

  • Coinage Dependence: The Balboa has been minted by the Philadelphia Mint and the Denver Mint. Relying on the US for coin minting could pose logistical and supply challenges in the future.

Tips

There is no consistency across Panama in the usage of the US Dollar sign ($) and the Balboa sign (B/.). It can take some time to get used to seeing the “B/.”. The best to remember is that it’s 1:1 the same as the US Dollar.

Conclusion

Panama’s usage of the U.S. dollar, alongside the Balboa, provides a unique model of economic stability and simplicity in trade. This dual-currency system has fostered confidence among investors and facilitated ease of transactions for both locals and expatriates. Despite some challenges, the overall benefits significantly contribute to Panama’s robust economic framework.

References

How to Exchange or Transfer Money In & Out of Panama

Written by spotlight on . Posted in Business, Living abroad, Panama.

When considering emigration to Panama the question of financial logistics quickly arises, including how to exchange or transfer money in and out of the country. Here are some options:

Exchanging Money in Panama

Currency Exchange Services

  • US Dollar and Balboa: Panama uses the US dollar as its official currency, alongside the Balboa, which is pegged 1:1 to the dollar. Hence, US dollars do not need to be exchanged.
  • Other Currencies: If dealing with other currencies, exchange services are available at banks, airports, and specialized exchange offices. Airport exchange rates tend to be higher.

ATMs

  • Access: ATMs are plentiful in urban centers and shopping areas, disbursing US dollars directly.
  • Fees: Most ATM providers like banks charge a fixed fee per withdrawal, usually around $1-2. Be mindful of potential fees from your bank or card provider, too.

Transferring Money Internationally

Online Money Transfer Services

  • Providers: Popular services include Wise, Western Union, MoneyGram, and PayPal. These platforms offer faster and often cheaper alternatives to traditional bank transfers.
  • Options: Transfers can be made directly to a bank account or for cash pickup.

Cryptocurrency Transfers

  • Efficiency: Cryptocurrencies such as Bitcoin offer an alternative, cost-effective way to transfer money internationally.
  • Regulations: Be aware of the risks and regulations. Panamanian banks generally do not accept transfers from crypto platforms, with the notable exception of Towerbank.

There are new providers like Bitpoint that allow using a Debit MasterCard that is connected to your cryptocurrencies giving you access to your funds.

Crypto-Friendly Bank in Panama

Towerbank

  • Bitcoin Friendly: Towerbank, with over 40 years of banking experience, stands out as the only Panamanian bank that allows crypto transactions.
  • Compatibility: It supports transfers from major crypto exchanges like Binance and Coinbase.

Important Factors and Tips

Know the Fees

  • Evaluate the fees associated with currency exchange, international transfers, and crypto transactions. Fees can significantly impact the final amount received.

Understand Exchange Rates

  • Rates can vary widely; compare options to maximize the value of your transfer.

Regulatory Compliance

  • Panama’s strict anti-money laundering laws mean large transactions may require additional documentation.

Plan for Delays

  • International transfers can take from a few hours to several business days. Account for this in time-sensitive situations.

Conclusion

When moving to Panama, a clear understanding of the financial mechanisms for transferring and exchanging money is essential. Whether using traditional banks, online transfer services, or cryptocurrencies, each method comes with unique fees, regulations, and delays. Plan accordingly to manage your finances efficiently.

References

  1. Panama Relocation Tours – Wiring Money In and Out of Panama Banks
  2. Legal Work Panama – How to Exchange Money in Panama
  3. GlobalBanks – Best Way to Transfer Money to Panama
  4. Wikipedia – National Bank of Panama
  5. Wikipedia – Grupo Banistmo
  6. Wikipedia – BAC Credomatic
  7. Citigroup – About Us
  8. Popular Bank Panama – About Us
  9. OECD – Multilateral Competent Authority Agreement
  10. Cointelegraph – Bitcoin-Friendly Top 30 Panama Bank
  11. Bitpoint LatAm – Cryptocurrencies Debit Card and App