What Happened to Panama’s Currency After Noriega — Could Venezuela & Cuba Be Next?

 

According to recent reports, U.S. Secretary of State Marco Rubio and the Trump administration are increasing pressure on Cuba through sanctions and economic restrictions while also reportedly offering humanitarian aid, infrastructure assistance, and internet access under strict political conditions. The condition reportedly includes the release of political prisoners, reduced political repression, and greater openness to U.S. private investment. Cuban officials rejected the idea of outside interference and described the pressure campaign as an attempt to weaken the Cuban government. (AP News)

When Manuel Noriega was removed from power in Panama after the 1989 U.S. invasion, Panama’s currency system became even more tied to the U.S. dollar. Panama already used the U.S. dollar alongside its local currency, the balboa, but after Noriega’s removal, confidence in the U.S.-backed financial structure increased and the country moved further into a dollarized economy. The stability of the dollar helped Panama rebuild confidence in banking and foreign investment relatively quickly.

Some analysts believe a similar scenario could theoretically happen in Venezuela if there were a major political transition. Venezuela’s currency, the Bolívar, has suffered from years of inflation and instability. If a new government aligned more closely with the United States and international financial institutions, the country could potentially move toward partial or full dollarization, greater foreign investment, and a stronger, more stable financial system. However, Venezuela’s situation is far more complex because of its larger population, political divisions, sanctions, and dependence on oil revenues.

The Edu Matrix channel reports on minor and exotic currencies, including the Vietnam Dong, the Iraqi Dinar, Venezuela's currency, and now Cuba's currency.  These are all currencies that can generate profit when their value increases against the U.S. dollar. Subscribe for more information.