Panama Money

View Cart / Checkout




Panama money is called balboas. However, American dollars are accepted everywhere in that country, because the United States dollar is legal tender, according to the Constitution of that nation.

Panama is an independent and sovereign state with its own money. However, Panama money exists only in the form of coins, not bills.

Panama bills have been printed only once, and after an insignificant amount of time in circulation, they were withdrawn and fed to a roaring furnace located in the United States Canal Zone. This disastrous numismatic moment took place in the year 1941, when Dr. Arnulfo Arias Madrid was serving as President of Panama. Back then, Panama bills of one, five, ten and twenty balboas were in circulation, for a total of only seven days to ninety days, depending on who you ask in Panama.

Why did President Arias Madrid have those bills printed, only to recall and burn them almost immediately afterward? Historians believe that it was the United States Government who did not like the idea of Panama having bills denominated in balboas, perhaps because it would have, in some way, compromised the security of the Panama Canal. Back then, the Panama Canal actually belonged to the United States.

The Constitution of the Republic of Panama states that the state can issue its own bills, but that it chooses not to do so, to keep inflation under control. Since American dollar bills are the only ones found circulating in Panama, balboa coins have never experienced any devaluation since they were first minted in 1904. The official exchange rate is one balboa for each United States dollar.

Oddly, even though no Panama bills exist, all prices in Panama are quoted in balboas. The balboa is, after all, worth the same as the American dollar, and it is the official monetary unit of the state.

Panama coins are highly prized around the World for their beauty and quality workmanship. They are also legal tender in an independent and sovereign nation. Unfortunately, Panama coins are scarce, because the numbers minted are almost always very small.