Guide · Living in Panama
Panama's Currency: The Balboa and the US Dollar
What currency is used in Panama, why the balboa and the US dollar circulate together and what a dollarized economy means for your income, savings and transfers.
- Official currency
- Balboa (B/.)
- Legal tender
- US dollar
- Exchange rate
- 1 balboa = 1 dollar
- Updated
In short
Panama's official currency is the balboa, but in practice the US dollar is used: both have the same value and the dollar is legal tender. Panama does not issue its own banknotes, only balboa coins, so you will pay, get paid and save in dollars.
Why is the dollar used in Panama?
Panama adopted the US dollar as legal tender at the beginning of the 20th century, alongside the balboa, at a fixed one-to-one rate. It has no central bank that issues banknotes or sets interest rates: the money in circulation depends on the dollars that flow in and out of its economy.
Which bills and coins will you use?
- Bills: US dollars only.
- Coins: balboa and US dollar coins, which circulate together at the same value.
- Prices are shown in balboas (B/.) or dollars (US$): it is the same thing.
What does it mean if you move to Panama?
- If your income is in dollars, you have no exchange rate risk in Panama.
- If it arrives in another currency, you will bear the exchange rate and the fees on each transfer: compare banks and money transfer services.
- Accounts at Panamanian banks are generally in US dollars.
- If you enter or leave Panama with cash or other monetary instruments of USD 10,000 or more, you must declare it to the National Customs Authority.
- Dollarization does not change how your income is taxed: Panama applies a territorial system.
Frequently asked questions
Can I pay with dollars everywhere in Panama?
Yes. The US dollar is legal tender throughout the country and is the currency used every day; balboa coins are accepted just like dollar coins.
Are balboa coins accepted outside Panama?
They are generally not accepted outside Panama: spend them before you leave the country. The bills, being US dollars, are.
Are there currency controls for bringing money in or out?
There are no currency controls, but banks ask you to document the source of funds, and cash of USD 10,000 or more must be declared at customs when entering or leaving.