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The city was founded on August 15, 1519, by Pedro Arias de Ávila, also known as Pedrarias Dávila.
Within a few years of its founding, the city became a launching point for the exploration and conquest of Peru and a transit point for gold and silver headed back to Spain through the Isthmus.
This led to yellow fever being eradicated by November 1905, as well malaria rates falling dramatically.
However, most of the laborers for the construction of the canal were brought in from the Caribbean, which created unprecedented racial and social tensions in the city.
It was a stopover point on one of the most important trade routes in the American continent, leading to the fairs of Nombre de Dios and Portobelo, through which passed most of the gold and silver that Spain took from the Americas.
The city is the political and administrative center of the country, as well as a hub for banking and commerce.In 1671 Henry Morgan with a band of 1400 men attacked and looted the city, which was subsequently destroyed by fire.The ruins of the old city still remain and are a popular tourist attraction known as Panamá la Vieja (Old Panama).Panamá is located between the Pacific Ocean and tropical rain forest in the northern part of Panama.The Parque Natural Metropolitano (Metropolitan Nature Park), stretching from Panama City along the Panama Canal, has unique bird species and other animals, such as tapir, puma, and caimans.