In the Republic of Panama, the official currency is balboa, which consists of one hundred cententsimo. This currency was put into circulation in 1904. Panama Balboa got its name from the name of Vasco Nunez de Balboa - the Spanish conquistador. For thirty years after the introduction until 1934 inclusive, the Panamanian currency had a gold content of 1.5048 grams. According to this indicator, the currency of Panama even slightly exceeded the US dollar, which contained 1.50463 grams of pure gold. However, in financial and trading operations, balboa was equated with the American currency. Since 1934, the current exchange rate ratio of two monetary units at the level of 1 to 1 was recorded.
Panamanian Balboa Overview
The currency of Panama in the international financial system is designated PAB. The Panama National Bank, which was founded in 1904, has the exclusive right to issue this currency. In 1941, paper bills in denominations of one, five, ten and twenty balboa were launched. But a week later they were withdrawn from circulation and disposed of. The people called paper money called "seven-day dollars."
To this day, Panama Balboa banknotes are not in circulation. As their alternative, US dollar bills are used . US dollars have been used as official currency in the Republic of Panama since 1904. Moreover, this monetary unit fully participates in money circulation throughout the country. Along with the dollar, the Panama currency is used in trading in the form of balboa coins in denominations of one, five, ten, twenty five and fifty centesimo. The first Panamanian coins were issued in 1973. They were made from a copper-nickel mixture. In addition, the National Bank of Panama minted special commemorative coins in denominations of one, ten, one hundred and two hundred balboa.
Appearance of Panamanian coins
As already mentioned, the currency of Panama is involved in trading in the form of coins in denominations of one, five, ten, twenty five and fifty centesimo.
One centesimo is minted from zinc and clad with copper. On the front side of the coin in the middle is the inscription UN CENTESIMO DE BALBOA, and in the upper part along the edge is written REPUBLICA DE PANAMA. On the back of the coin there is an image of the leader Urraki and the word URRACA, and, in addition, the year of issue.
Five centesimo made of copper-nickel alloy. On the reverse of the coin in the middle is the face value, below nine stars and the inscription corresponding to the value of the coin in a circle around the edge.
Ten and twenty-five centesimos are made of copper and coated with a copper-nickel alloy. In the central part of the reverse of the coin there is an image of General Vasco Núñez de Balboa, and a text with a face value in a semicircle on the edges.
Fifty cententsimo minted from a copper-nickel alloy, and their design exactly repeats the design of coins in ten and twenty-five centesimo.
Banking hours and conditions for exchanging different currencies
In Panama, banking institutions operate on weekdays from Monday to Friday. They open at 8:00 in the morning and work until 15:00 in the afternoon. On Saturday, banks operate from 8:30 a.m. to noon. Foreign banknotes can be purchased at all branches of the National Bank. These include exchange points at the airport and on the territory of other infrastructure facilities. In the local language, such institutions are called casa de cambio. It will be by the way to say that in the capital of the Republic of Panama, the city of Panama, you can buy currency from almost any other state in the world. In the regions of the country, the American dollar and the euro are in greatest demand and supply.
Use of bank cards and traveller's checks
The Republic of Panama is a fairly developed state from an economic point of view. Therefore, it is not surprising that everywhere in the country payment by plastic cards is allowed from the main payment systems: MasterCard, American Express, Diners Club and Visa. In the capital of Panama, there are over two hundred ATMs.
In addition, almost every bank can receive cash in exchange for traveller's checks. It should be clarified that the most beneficial is the use of traveler's cheque in US dollars. This is due to the fact that, as mentioned earlier, in the Republic of Panama, the currency, the balboa rate of which is tightly tied to, is the US dollar.