Héctor Valdez Albizu – Panama’s Central Bank Governor

When talking about Héctor Valdez Albizu, Panama’s central bank governor since 2019, an economist who guides the country’s monetary framework. Also known as Governor Albizu, he oversees the Central Bank of Panama, the institution that safeguards financial stability and implements policy decisions and steers monetary policy, the set of actions that control money supply, interest rates, and credit conditions. His background includes a doctorate in economics and a long stint at the International Monetary Fund, giving him a global perspective that he brings to local decision‑making.

Why Héctor Valdez Albizu matters for Panama’s financial landscape

Héctor Valdez Albizu operates in a unique setting: Panama uses the US dollar as legal tender, a dollarized economy, a system where the national currency is replaced by a foreign one, limiting traditional exchange‑rate tools. Because the country cannot print its own money, the governor focuses on inflation management, keeping price growth low and predictable through fiscal coordination and regulatory oversight. He works closely with the Ministry of Economy and Finance to align budgetary policy with the central bank’s objectives, ensuring that government spending does not fuel excess demand. When external shocks hit – such as commodity price swings or regional political turmoil – Albizu’s toolkit includes reserve management, liquidity provisions, and communication strategies that shape market expectations.

In practice, his approach to monetary policy, the craft of adjusting interest‑rate benchmarks and banking regulations aims to preserve the low‑inflation environment that has attracted foreign investment to Panama’s logistics and financial sectors. The governor’s recent policy statements emphasize the need for “macro‑prudential vigilance” – a term that reflects his belief that banking supervision, capital adequacy, and stress‑testing are as vital as interest‑rate decisions in a dollarized framework. By keeping inflation under control, he supports the purchasing power of Panamanian households and the competitiveness of the Panama Canal’s services.

Looking ahead, Albizu faces challenges that tie together all the entities discussed: preserving stability in a dollar‑based system while fostering inclusive growth, navigating global monetary tightening, and maintaining confidence in the Central Bank of Panama’s capability to act decisively. The articles below showcase how his policies play out on the ground, from the latest inflation reports to debates about fiscal‑monetary coordination. Dive in to see the real‑world impact of a governor who balances global economics with Panama’s unique monetary reality.