Currency of Panama. History of Panamanian Balboa

In the Republic of Panama, the official monetary unit is balboa, consisting of one hundred centimesimo. This currency was put into circulation in 1904. Panamanian Balboa received its name due to the name of Vasco Núñez 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. In this indicator, the currency of Panama was even slightly higher than the US dollar, which contained 1.50463 grams of pure gold. Nevertheless, in financial and trading operations, balboa was equated with the American currency. Since 1934, the exchange rate of the two monetary units at the level of 1 to 1 has been fixed up to now.

General information about Panamanian Balboa

The currency of Panama in the international financial system has the designation PAB. The National Bank of Panama is the exclusive right to issue this currency, which was founded in 1904. In 1941, paper denominations of one, five, ten and twenty balboa were launched into circulation. But within a week they were withdrawn from circulation and disposed of. In the people these paper money were called "seven-day dollars."

To this day, banknotes of the Panamanian balboa are not available in circulation. As their alternative, American dollar bills are used . US dollars are being used as the official currency in the territory of the state of the Republic of Panama since 1904. Moreover, this monetary unit fully participates in the money turnover on the territory of the whole country. Along with the dollar, in trading operations, the currency of Panama is used in the form of coins of balboa of one, five, ten, twenty-five and fifty centecimo. The first Panamanian coins were issued in 1973. They were made from a copper-nickel mixture. In addition, the National Bank of Panama coins special jubilee coins worth one, ten, one hundred and two hundred balboas.

Appearance of Panama coins

As already mentioned, the currency of Panama participates in trading operations in the form of coins worth one, five, ten, twenty-five and fifty centecimo.

One centecimo is minted from zinc and clad with copper. On the front side of the coin stands the inscription UN CENTESIMO DE BALBOA, and in the upper part along the edge REPUBLICA DE PANAMA is written. On the reverse side of the coin there is an image of the leader Urraki and the word URRACA, and, moreover, the year of release.

Five centesimo are made of copper-nickel alloy. On the reverse of the coin in the middle there is a denomination, below nine stars and an inscription corresponding to the coin's dignity on a circle with the edge.

Ten and twenty-five centecimo are made of copper and covered with a copper-nickel alloy. In the central part of the reverse of the coin is the image of General Vasco Núñez de Balboa, and at the edges a semicircular text with a face value.

Fifty Centesimo are minted from a copper-nickel alloy, and their design is exactly the same as the coin design at ten and twenty-five centecimo.

Mode of operation of banks and the terms of exchange of different currencies

In Panama, banking institutions operate on weekdays from Monday to Friday. They open at 8:00 in the morning and work until 3:00 pm. On Saturday, banks operate from 8:30 am to noon. Foreign banknotes can be purchased in all branches of the National Bank. These include the exchange points at the airport and in 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 the currency of almost any other country in the world. In the regions of the country, the US dollar and the euro use the highest demand and offer.

Use of bank cards and traveler's checks

The Republic of Panama is a fairly developed state from an economic point of view. Therefore, it is not surprising that plastic cards from major payment systems are accepted everywhere in the country: 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 traveler's checks. It should be clarified that the most beneficial is the use of the traveler's check in American dollars. This is due to the fact that, as already mentioned earlier, in the Republic of Panama, the currency, the course of balboa to which is tightly tied, is the US dollar.