The rules limiting when people can could go out for essentials proved controversial because it led to harassment and discrimination against transgender people.
Health Minister Luis Antonio Sucre said urged caution despite lifting of the rule, which had been in place since March.
“Today we are beginning a new stage,” Sucre said, “in which men and women can go out when they wish. We have to be very careful, we have to remember that the pandemic is not over.”
Panama has had 101,745 reported cases and 2,166 deaths.
Similar measures were also tried in Peru to reduce the number of people on the street and slow the spread of contagion.