What currency does Panama use?

Quick answer

Panama uses the Panamanian balboa (PAB) and the US dollar (USD), with the US dollar being the main currency in everyday use.

In-depth explanation

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.

FAQs

Does Panama use US dollars?

Yes, the US dollar is the main currency used in Panama.

What is the balboa?

The balboa is Panama’s official currency, but it only exists as coins.

Do I need to exchange money when visiting Panama?

If you have US dollars, no exchange is needed.

Are prices in Panama in balboas or dollars?

Prices are usually shown in dollars, but both currencies are equivalent.

Useful tips for travelers

  • Carry small bills: Many small shops, taxis, or local markets may not have change for large bills like $50 or $100.
  • Get familiar with coins: You may receive coins that are either Panamanian Balboas or US cents. They have the same value but look different.
  • Use cards in urban areas: In places like Panama City, restaurants, hotels, and shopping centers widely accept credit and debit cards.

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At a glance

Official currency Panamanian balboa (PAB)
Circulating paper money US dollar (USD)
1 balboa 1 US dollar

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