Arco Chato Old City Panama. Time-tested remains of a church built by Dominican friars featuring an iconic stone archway.. Panama City, the capital of Panama, is a modern city framed by the Pacific Ocean and man-made Panama Canal. Casco Viejo, its cobblestoned historic center, is famed for colonial-era landmarks like the neoclassical Palacio Presidencial and bougainvillea-filled plazas lined with cafes and bars. The Miraflores Locks offers views of ships traversing the canal, an essential shipping route linking the Atlantic and Pacific.
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