What currency (money) does Panama use?

The official currency of Panama is called the Balboa, but there are no paper Balboas in circulation; just US greenbacks, often soiled and falling apart.  Instead, the US dollar is what you use in Panama (with the official exchange rate of one Balboa equal to one US dollar). Most people prefer to use bills of $20.00 or less since many merchants will require that you fill out a form if you want to pay with a $50 or $100 bill - time consuming at the checkout register.

The Balboa...

The official currency of Panama is called the Balboa, but there are no paper Balboas in circulation; just US greenbacks, often soiled and falling apart.  Instead, the US dollar is what you use in Panama (with the official exchange rate of one Balboa equal to one US dollar). Most people prefer to use bills of $20.00 or less since many merchants will require that you fill out a form if you want to pay with a $50 or $100 bill - time consuming at the checkout register.

The Balboa does exist as coins, with the same denominations and size as US coins, with a couple of coins not seen in the US.  The 1 Balboa (called a Martinelli after the current President) is equal to $1.00 and you will also from time to time see a 50 cent piece.  You will also see other Panamanian coins in circulation, similar in size and appearance to the US coins for the 1, 5, 10, 25  and 50 cent denominations.

Panamanian Balboa coins cannot be exchanged or used outside of Panama, although they do fit into US vending machines.  US coins are freely accepted in Panama, but check your change when leaving as only US coins are legal tender back in the US.

 

The official monetary unit in Panama is called the Balboa.  B/. 1.00  = US$1.00.  Having said that, there is no Panamanian paper money in circulation, the US Dollar is used.  Most people prefer to use bills of $20.00 or less since many merchants will require that you fill out a form if you want to pay with a $50 or $100 bill - time consuming at the checkout register.

 

There are Balboa coins in circulation, similar in size and appearance to the US...

The official monetary unit in Panama is called the Balboa.  B/. 1.00  = US$1.00.  Having said that, there is no Panamanian paper money in circulation, the US Dollar is used.  Most people prefer to use bills of $20.00 or less since many merchants will require that you fill out a form if you want to pay with a $50 or $100 bill - time consuming at the checkout register.

 

There are Balboa coins in circulation, similar in size and appearance to the US coins for the 1, 5, 10, 25  and 50 cent denominations.  However, while these will normally work in US vending machines, they are NOT legally valid for use outside of Panama, so before going out of the country, check you coins and use the Balboas before you leave.  There are many US coins in circulation, so these can be used in the US.

 

Recently a 1 Balboa coin has been issued.  This appeared during the present government period and many Panamanians call this a "Martinelli", named for the President of the country, and is unpopular with some of the local residents.  This is NOT a valid coin for use outside of the country.
 

The official unit of currency in Panama is the Balboa. The value of the Balboa is pegged to the US Dollar at a rate of 1:1, so 1 Balboa = 1 USD.

 

In fact the two currencies are so closely linked that Panama doesn't produce any of it's own bank notes, and paper US Dollars are used here as currency. A 1 Balboa coin was introduced in 2011 by the current government, and is very commonly referred to as a "Martinelli", after the current president, Ricardo...

The official unit of currency in Panama is the Balboa. The value of the Balboa is pegged to the US Dollar at a rate of 1:1, so 1 Balboa = 1 USD.

 

In fact the two currencies are so closely linked that Panama doesn't produce any of it's own bank notes, and paper US Dollars are used here as currency. A 1 Balboa coin was introduced in 2011 by the current government, and is very commonly referred to as a "Martinelli", after the current president, Ricardo Martinelli. The 1 Balboa coin is actually minted by the Royal Canadian Mint, chosen because they already have experience of minting bi-metallic coins. (The Canadian "toonie" $2 coin is very similar to the Balboa coin)

 

The Balboa is broken down into 100 sub-units, just as the US Dollar is. Here the cents are called centesimos, or often colloquially as centavos. US coins are accepted everywhere, although Panama does have it's own set of coins too. These aren't accepted back in the US, so sort your pocket change when heading north!

 

As well as the "Martinelli" there is a 50c coin, and the rest of the set that will be familiar to North Americans - 25c, 10c, 5c, 1c. These are all the same size and weights as the US versions.

 

The gentleman depicted on the coins is Vasco Núñez de Balboa.

 

From Wikipedia - "Vasco Núñez de Balboa (c. 1475 – around January 12–21, 1519) was a Spanish explorer, governor, and conquistador. He is best known for having crossed the Isthmus of Panama to the Pacific Ocean in 1513, becoming the first European to lead an expedition to have seen or reached the Pacific from the New World."

 

One of my friends once made me laugh when I showed him one of the Panamanian coins. "I bet he was sat on a horse when he had that photo taken!"

 

Señor Balboa has had his name attributed to many things in Panama. There can't be a town in Panama without at least one road or street carrying his name. He has quite a few statues erected in his honour too. He even has a port town and a district named after him. Further afield he has appeared in the lyrics of a Randy Newman song ("The Great Nations of Europe") and even has a lunar crater named after him - now that really is having your name live on long after you have died.

 

To add further potential confusion to Panamanian conversation and transactions, one of the national beers is also named after the ubiquitous Señor Balboa:-

 

"Bring ten Balboa to the meeting on Friday night!"

 

Cheers!

Panamá, as a very well known international business center, offers all kinds of interesting business opportunities. Therefore,  many major corporations, and some banks, large law offices, among others, offers banking transactions in 

U.S. dollars, as well as (European) Euros.

 

Even though the official currency of Panamá is called the "Balboa," the normal currency around the country is the U.S....

Panamá, as a very well known international business center, offers all kinds of interesting business opportunities. Therefore,  many major corporations, and some banks, large law offices, among others, offers banking transactions in 

U.S. dollars, as well as (European) Euros.

 

Even though the official currency of Panamá is called the "Balboa," the normal currency around the country is the U.S. dollar, which has the same value.  You can get Panamanian coins as change, or for souvenirs.   If you want to transfer money, or purchase and international money order, no "Balboas" are mentioned, just US dollars. 

 

The economy in Panamá has been very stable since Panamá is a republic, and the  economic growth continues at a very high speed every year, offering multiple opportunities to those who want to invest, or open businesses here.  As a matter of fact, a large industrial area, called "Panamá Pacífico" hosts over 140 multinationals that have decided to transfer their headquarters offices to Panamá because of the  enormous benefits and stability in the country.

 

(The logo for the pharmaceutical company, Pfizer Inc. which has a branch in Panama, pictured.)