Panama money - Balboa and US dollar
The currency unit in Panama is the balboa (PAB), although the US dollar (USD) is also widely used and accepted as an official means of payment. The balboa is mainly used in coins, while the US dollar as a banknote is the most common currency for payments in Panama.
The history of currency in Panama
The currency unit in Panama has an interesting history, which is strongly characterised by the country's geographical and historical events. After gaining independence from Spain in 1821, Panama initially used the Gran Colombian peso.
After independence from Colombia in 1903 and the construction of the Panama Canal, the balboa (PAB) was introduced as Panama's currency, while the US dollar (USD) was increasingly accepted as the official means of payment.
Today, the balboa is mainly circulated in coins, while the US dollar serves as the main currency for payments. This dual Panama currency ensures that the US dollar remains the dominant currency in Panama, reflecting the close economic ties with the USA. Thus, Panama money is often the US dollar, although the balboa continues to exist as an official means of payment.
Worth knowing
Abbreviation: PAB / USD
Coins & Banknotes: Balboa coins and US dollar banknotes
Exchange rate: The balboa is pegged 1:1 to the US dollar.
International significance: The US dollar as the main currency promotes economic stability and close trade relations with the USA.
Overview of means of payment in Panama
- Credit cards (Visa, MasterCard, American Express) are widely used in most urban areas and by large companies and are accepted in hotels, restaurants, shopping centres and large shops.
- Debit cards are also widely used and are a common method of payment at banks and major retailers in the country.
- Card acceptance: In more rural areas, it can be less common to pay with credit cards and cash is often preferred.
- TheUS dollar (USD) is the most commonly used currency in Panama and is accepted for almost all transactions.
- Balboa (PAB) is also used, but mainly in coins, while US dollar banknotes dominate.
- Cash is widely used in all areas of daily life, from small purchases to larger payments in shops, restaurants and markets.
- Mobile payments: Platforms such as Yappy and Tigo Money are increasingly popular in Panama and enable mobile payments directly via smartphones. These are mainly used in urban areas and by younger consumers.
- Online payments: In Panama, payments via platforms such as PayPal and Stripe are also common, especially for online purchases and digital services.
Exchange money in Panama
US dollars are accepted everywhere in Panama, so you usually do not need to exchange money, especially as ATMs are widespread and dispense USD, while currency exchange is possible at airports, banks or exchange offices, but is not necessarily recommended due to often poor exchange rates.
Motifs on the Panama Balboa coins
This coin shows the portrait of Urracá, an indigenous chieftain and resistance fighter against Spanish colonisation.
The 5 centésimos coin only bears the value indication without a portrait or special symbol.
The coat of arms of the Republic of Panama is depicted on the 10 centésimos coin.
The 25 centésimos coin also features the Panamanian coat of arms on the obverse.
This coin shows a portrait of Vasco Núñez de Balboa, the Spanish explorer and namesake of the currency.
The 1-balboa coin bears the Panamanian coat of arms and has been minted in an eye-catching bimetallic design since 2011.
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Frequently asked questions - Currency Panama
Panama is rather expensive compared to many other Latin American countries, especially in urban areas and for imported products. However, the cost of living can vary depending on the region.
Yes, Panama has its own currency, the Balboa (PAB), but the US dollar (USD) is also widely used as an official means of payment and is the dominant currency.
The US dollar (USD) is best in Panama as it is widely used and accepted for virtually all transactions. The Balboa (PAB) is only used in coins and is essentially pegged 1:1 with the US dollar.
Vasco Núñez de Balboa was a Spanish explorer and the first European to see the Pacific Ocean from the American side. He is revered as one of the most important historical figures in Panama.
Visa, MasterCard and American Express are widely accepted in Panama, especially in urban areas and at large shops. Credit cards are a convenient method of payment.
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