In this article, we’re exploring the currency of Panama. We’ll share information on the current and past legal tenders and currencies of Panama and answer common questions we receive from people exploring this topic.
This article is part of our free series on the currency of Panama. You can access this series right now by using the link above.
In addition to detailed account opening guides, this free series on Panama banking also discusses the largest banks in Panama, Panama opening requirements, the costs of banking in Panama, and much more. Use the link above to start exploring all of your free Panama banking content right now.
Alternatively, use the table of contents to continue exploring more information on the currency code of Panama.
Table of Contents
- What Is the Currency Code of Panama?
- Frequently Asked Panama Banking Questions
- Do You Want to Open a Panama Bank Account?
What Is the Currency Code of Panama?
The currency code of Panama is PAB and USD. This is because Panama uses both the Panamanian Balboa and the United States Dollar as its official currency.
It’s important to note that the Panamanian Balboa is only available in coinage. The United States Dollar is used for all paper transactions, currency exchange in Panama is available if needed.
What Is the History of Currencies in Panama?
Panama used the Colombian Peso before announcing the country’s official currency, the Panamanian Balboa, in 1904.
The country’s economic ties to the United States grew stronger with the completion of the Panama Canal. In 1904, Panama announced its second official currency, and US dollars were accepted in Panama, pegging PAB at par value to USD.
Since adopting the United States Dollar as its second official currency in 1904, Panama has become an attractive destination for anyone from a country where the home country has appreciated against the USD, making Panama an economical choice for investing in real estate or vacationing.
Panama is also an attractive destination for travelers coming from the United States or other economies where USD is the official currency.
If you are interested in learning more about banking in Panama, don’t forget to visit our comprehensive guide on banking in Panama, available in the link above.
Alternatively, if you would like to explore all of your offshore banking options, download our free guide and compare Panama to some of the top banking jurisdictions available.
Do You Want to Explore All Your Offshore Banking Options?
Frequently Asked Panama Banking Questions
Below are a few of the most common questions we receive from people exploring the currency code of Panama. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
What is Panama’s Main Currency?
Panama’s main currency is the Panamanian Balboa. However, the United States Dollar is also an official currency, to which the Panamanian Balboa is pegged at par value. It’s important to note that the Balboa is only available in coinage and is circulated interchangeably with the US coins. All paper transactions are completed in US money.
Does Panama Use the US Dollar?
Yes, Panama uses the U.S. dollar. In short, Panama does not have a central bank, their largest trading partner is the United States, and following separation from Colombia, the United States was quick to recognize the country’s independence. When the Panamanian Balboa was officially announced as the country’s currency in 1904, it was pegged at par value to USD.
How Much Is 1 US Dollar in Panama?
1 US dollar in Panama is equivalent to 1 Balboa. This is because the Panamanian Balboa is pegged to the United States Dollar at par value.
Do You Want to Open a Panama Bank Account?
If so, you can access GlobalBanks IQ and start the process of applying in Panama in a few clicks.
GlobalBanks IQ is our flagship international bank account opening solution. It gives you instant access to the…
+ Expert insights on which banks to choose & why
+ Step-by-step reports to open bank accounts in the best banking hubs
+ GlobalBanks international bank database & detailed bank profiles
+ Tried & tested banks for high-risk, offshore, & non-resident clients
+ Plus, get YOUR most pressing bank account opening questions answered by our team!
And “yes!” GlobalBanks IQ helps foreigners and non-resident individuals open bank accounts.
In fact, GlobalBanks IQ even helps non-resident, foreign & offshore entities open bank accounts.
To learn more about opening accounts with GlobalBanks IQ, use the link in the top menu. Or, contact us directly with any questions!
