The Balboa is named after Spanish explorer Vasco Núñez de Balboa, the first European to cross the Americas and reach the Pacific Ocean.
Panama has a unique monetary system that uses the U.S. dollar as legal tender for banknotes and the Balboa for coins.
Segments and denominations
Panamanian Balboa is divided into 100 smaller units called centésimos.
Coins are available in denominations of 1, 5, 10, 25 and 50 cents, as well as the 1 Balboa coin.
Balboa does not issue banknotes; instead, Panama uses U.S. dollar bills as paper currency.
The Panamanian Balboa is pegged to the US Dollar at a fixed exchange rate of 1 PAB = 1 USD.
Due to this peg, the value of Balboa moves in tandem with the U.S. dollar.
This arrangement provides Panama with a stable currency as fluctuations in the value of the Balboa are minimized.
Panama is a mixed economy with significant contributions from the services, industry and agricultural sectors.
The country’s strategic location at the crossroads of the Americas makes it an important hub for international trade and commerce.
The Panama Canal is an important shipping route connecting the Atlantic and Pacific Oceans and plays a vital role in the country's economy.
Other important contributors to the Panamanian economy include the banking and finance industry, tourism and logistics.
In recent years, the country's economy has continued to grow steadily, driven by increased foreign investment, infrastructure development and economic reforms.
Challenges and prospects
The Panamanian economy faces several challenges, such as income inequality, poverty, and the need to diversify the economy.
Additionally, the country must address issues related to corruption, transparency and governance to remain attractive to foreign investors.
Efforts to diversify the economy, invest in education and health care, and improve infrastructure can help Panama maintain its growth momentum and ensure long-term economic stability.
To sum up, the Panamanian Balboa is one of the official currencies of Panama and is used as coins, while the US dollar bills are used as banknotes.
Balboa is subdivided into cents and pegged to the U.S. dollar at a fixed exchange rate. Panama has a mixed economy, with significant contributions from the services, industry and agricultural sectors.
The country faces challenges such as income inequality, poverty and the need to diversify the economy, but the economy has been growing steadily, driven by increased foreign investment, infrastructure development and economic reforms.