Panamanian Balboa Explained: What You Need to Know
This article is a summary of reporting by Remitly. Originally published June 26, 2025.
Panama has recognized both the Panamanian balboa and the U.S. dollar as legal tender since its independence in 1904. The balboa is pegged one-to-one to the U.S. dollar, but the country does not print paper balboa banknotes, relying completely on greenbacks for physical cash and using the balboa strictly in coin denominations. This monetary arrangement shields domestic consumers from runaway inflation and currency devaluation while facilitating seamless commerce and cross-border transactions.
AI Summary
A financial guide details the historical roots, parity structure, and practical roles of both the balboa and U.S. dollar in Panama.
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