The city was formally reestablished two years later on 21 January 1673, on a peninsula located 8 km (5 miles) from the original settlement.
On 28 January 1671, the original city was destroyed by a fire when the privateer Henry Morgan sacked and set fire to it. 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 mined from the Americas. The city was the starting point for expeditions that conquered the Inca Empire in Peru. The city of Panama was founded on 15 August 1519, by Spanish conquistador Pedro Arias Dávila. The city is the political and administrative center of the country, as well as a hub for banking and commerce. The city is located at the Pacific entrance of the Panama Canal, in the province of Panama. It has a total population of 1,938,000, with over 1,500,000 in its urban area. Panama City (Spanish: Ciudad de Panamá pronounced ), also known as Panama (or Panamá in Spanish), is the capital and largest city of Panama.
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