Panama lies in Central America, between the Caribbean Sea, the Atlantic Ocean and the Pacific Ocean. It occupies a strategic position along the isthmus linking South America to North America. The country is bounded by Costa Rica to the north and Colombia to the south and Panama's official currency is the US dollar. Costa Rica is sometimes referred to as "the Switzerland of Central America." The comfortable lifestyle, peaceful government, and stunning natural wonders make this small Central American country the perfect vacation spot.