Panama
Currency in Panama: what to use and how to exchange
Panama uses the balboa (PAB), fixed at 1:1 with the US dollar, and US dollar notes are the everyday paper money; Panamanian coins (1, 5, 10, 25, 50 centésimos) circulate alongside US coins. Bring clean US dollars and use cards for hotels and larger bills; change only what you need for buses, markets and small towns.
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GuidePanama
Key facts
- Currency
- Balboa (PAB), pegged 1:1 to the US dollar
- Paper money
- US dollar notes; Panama issues no banknotes of its own
- Coins
- Panamanian 1, 5, 10, 25 and 50 centésimos, plus US coins
- Best rate
- Cards and ATMs for large amounts; banks for cash exchange
- Cards accepted
- Hotels, chain shops and city restaurants; less so in small towns and markets
- Tipping
- 10% in restaurants if not already added
- Time zone
- UTC−5 all year, no daylight saving
Details
Panama is a dollarised economy. The balboa exists only as coins and as an accounting unit, and it is fixed at one balboa to one US dollar. In practice you will pay with US notes everywhere, and you will get change in a mix of Panamanian and US coins. Treat the two as interchangeable: a Panamanian 25-centésimo coin is worth a US quarter.
Because the peg is fixed, there is no currency risk and no reason to hunt for a better rate on the balboa itself. What varies is the cost of getting dollars: the exchange rate your bank gives you, ATM fees, and the spread a hotel or shop applies if it converts your card. If you arrive with euros, pounds or Canadian dollars, you are exchanging into US dollars, not into a separate Panamanian currency.
Panamanian coins are easy to accumulate and hard to spend outside the country. Use them for buses, taxis, snacks and market stalls, or change them back before you fly. US coins work the same way. Small notes are useful: a US$20 note can be awkward at a rural kiosk early in the morning.
Cards work well in Panama City, at chain hotels and supermarkets, and at larger restaurants. Outside the cities, and for buses, boats to the islands, market food and small guesthouses, cash is the practical option. Carry a mix, and keep a reserve of US dollars separate from your daily money.
- Carry US dollars in clean, untorn notes; damaged notes can be refused.
- Keep a small cash reserve for places that do not take cards.
- Use coins for buses and small purchases rather than letting them pile up.
| Situation | Best option | Notes |
|---|---|---|
| Hotels, chain shops, city restaurants | Credit or debit card | Visa and Mastercard widely accepted |
| ATMs in cities | Debit card | Fees vary by bank; take out larger amounts less often |
| Buses, taxis, markets, small towns | Cash in US dollars | Small notes and coins help |
| Arriving with euros or pounds | Bank or exchange house | You are buying US dollars; compare the spread |
| Leftover Panamanian coins | Spend before departure | Hard to exchange abroad |
Rates and fees change; confirm with your bank before you travel.
Tips
Tell your bank you are travelling so your card is not blocked, and check what it charges for foreign transactions and ATM withdrawals. A card with no foreign transaction fee usually beats exchanging cash at a counter.
Withdraw larger amounts less often to reduce fixed ATM fees, but not so much that you carry more cash than you need. Use ATMs inside banks, malls or busy areas during the day, and cover the keypad.
Prices in Panama are quoted in dollars, so mental maths is simple. Budget for the Canal, island boats and national park entries in cash, and check the money and tipping page for what to leave in restaurants.
FAQ
Questions people ask
What currency is used in Panama?
The balboa (PAB), fixed at 1:1 with the US dollar. US dollar notes are the everyday paper money, and Panamanian coins (1, 5, 10, 25, 50 centésimos) circulate alongside US coins. You do not need to buy balboas before you arrive.
Where is the best place to exchange money in Panama?
For most travellers, cards and ATMs give the best effective rate. If you arrive with euros, pounds or Canadian dollars, use a bank or a licensed exchange house in Panama City and compare the spread; hotels and airports are usually the most expensive option.
Is it better to bring cash or use a card in Panama?
Bring both. Cards work in Panama City hotels, supermarkets and larger restaurants, while buses, taxis, markets, island boats and small towns run on cash. Carry US dollars in small notes and keep a reserve separate from your daily money.
Deep dive
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