What is the currency in Panama?
The official currency of Panama is the Panamanian Balboa (PAB). However, Panama also uses the United States Dollar (USD) as its legal tender. The Balboa is available in both coin and banknote form, while the US Dollar is in circulation as banknotes only. The two currencies are used interchangeably, with the Balboa having the same value as the dollar.
FAQs about the currency in Panama:
1. Can I use US dollars in Panama?
Yes, US dollars are widely accepted in Panama, as it is an official currency alongside the Balboa.
2. Is it better to use US dollars or Balboas in Panama?
It is more common and convenient to use US dollars in Panama, especially for tourists, as they are readily accepted and widely available.
3. Where can I exchange money in Panama?
Currency exchange services are available at banks, exchange houses, and some hotels throughout Panama. It is recommended to exchange money at authorized institutions for better rates and security.
4. Are credit cards widely accepted in Panama?
Yes, credit cards are generally accepted in many establishments in Panama, especially in urban areas and tourist destinations. However, it is advisable to carry some cash for smaller vendors and remote areas.
5. Can I withdraw US dollars from ATMs in Panama?
Many ATMs in Panama allow you to withdraw US dollars, but it is essential to check with your bank and ensure that your card is enabled for international withdrawals.
6. What is the current exchange rate between the Balboa and the US Dollar?
The exchange rate between the Balboa and the US Dollar is fixed at a 1:1 ratio. One Balboa is equal to one US Dollar.
7. Should I bring US dollars or use my credit card in Panama?
It is recommended to use a combination of both. Having some US dollars for convenience and emergencies is helpful, while credit cards are practical for larger purchases and widely accepted venues.
8. Can I use other foreign currencies in Panama?
While US dollars are widely accepted, other foreign currencies may not be accepted as legal tender. It is advisable to exchange your currency to either the Balboa or the US Dollar before arriving in Panama.
9. What are the denominations of the Balboa?
Panamanian coins are available in denominations of 1, 5, 10, 25, and 50 cents, as well as 1 Balboa. Banknotes come in denominations of 1, 5, 10, 20, and 50 Balboas.
10. Do I need to carry small change in Panama?
Having some small change can be useful for services like taxis, small local businesses, or markets where they may not have sufficient change for larger denominations.
11. Can I pay in Balboas and receive change in US dollars?
Yes, it is common to pay in Balboas and receive change in US dollars, as both currencies are used interchangeably and both have the same value.
12. Can I use my credit card in rural areas of Panama?
While credit cards are widely accepted in urban areas, it is advisable to carry cash when traveling to rural areas where card acceptance may be limited or unavailable.