The Republic of Panama, a Central American country situated between Costa Rica and Colombia, has an area of 29,206 sq. mi. (77,083 sq. km.) and a population of 2.86 million. Capital: Panama City. The Panama Canal is the country?s biggest asset; servicing international commerce. Bananas, refined petroleum, sugar and shrimp are exported. ,Panama was visited by Christopher Columbus in 1502 during his fourth voyage to the Americas. It was explored by Vasco de Balboa in 1513. Panama City, founded in 1519, was a primary trans-shipment center for treasure and supplies both to and from Spain and the Colonies. Panama declared its independence in 1821 and joined the Confederation of Greater Columbia. In 1903, after Columbia rejected a treaty enabling the United States to build the Canal across the Isthmus, Panama, with the support of the United States, proclaimed its independence from Colombia and became a sovereign republic.,, ,Notes of the United States have normally circulated throughout Panama.,, Monetary System:,,, ,1 Balboa = 100 Centesimos,,