Panama has a unique monetary system where two currencies coexist: the Panamanian balboa (PAB) and the United States dollar (USD).
The balboa is the official national currency, but it exists only in coin form. These coins are equal in value and size to US coins. There are no balboa banknotes in circulation.
In practice, the US dollar is the primary currency used across the country. All paper money in Panama is US currency, and prices in stores, services, and tourism are typically displayed in dollars.
This system provides stability and makes it very convenient for travelers, especially those coming from the United States, as there is no need to exchange currency.