If you’re planning a trip to the Isthmus, you’ve probably searched for the Panamanian currency exchange rate and ended up more confused than when you started. You see two different names. You see symbols like B/. and $. Honestly, it looks like a math problem nobody asked for.
But here is the reality: there is no exchange rate. Not really.
Panama is a dollarized economy. Since 1904, the Panamanian Balboa has been pegged to the U.S. Dollar at a 1:1 ratio. They are twins. They’re stuck together. If you have a dollar, you have a balboa. If you have a balboa, you have a dollar.
The Ghost Currency in Your Wallet
You will never see a Balboa banknote. They don't exist. Well, they did for about seven days in 1941 before a coup happened and the government burned them all, but that’s a story for a different time. Today, every single paper bill in Panama is a crisp (or crumpled) U.S. Federal Reserve note.
When you go to an ATM in Panama City, it spits out U.S. dollars. When you pay for a pipa fria (cold coconut) on the beach in Kuna Yala, you hand over a George Washington.
So, why does everyone talk about the Balboa?
Coins. That is the only place the Balboa actually "lives" in physical form. Panama mints its own coins in denominations of 1, 5, 10, 25, and 50 centésimos, plus a 1-balboa coin that people affectionately call a "Martinelli" (named after the president who introduced them).
These coins are the exact same size and weight as U.S. coins. You can drop a Panamanian quarter into a U.S. vending machine, and it’ll probably work—though I didn’t tell you to do that. In Panama, you’ll get a mix of both in your change. You might get a U.S. dime and a Panamanian quarter back from the same cashier. It's totally normal.
Why the Panamanian currency exchange rate stays at 1:1
Most countries have a central bank that loves to mess with interest rates or print money when things get tight. Panama doesn't have one. Because they don't print paper money, they can't just "create" more Balboas to pay off debt.
This makes Panama’s economy weirdly stable compared to its neighbors. While other Latin American currencies are bouncing around like a heart rate monitor, the Panamanian currency exchange rate remains a flat line. One to one. Always.
The $100 Bill Headache
Here is a pro tip that will save you a lot of sweat at the grocery store: Panama hates $50 and $100 bills.
It's kinda ironic for a country known for its massive banking sector, but small businesses are terrified of counterfeits. If you try to pay with a Benjamin, be prepared to:
- Show your passport.
- Wait for a manager.
- Sign a logbook with your serial number.
- Get a lot of side-eye from the people in line behind you.
Stick to $20s. Seriously. If you’re heading out of Panama City to places like Boquete or the San Blas islands, even $20s can be hard to break. Load up on $1s, $5s, and $10s. You’ll thank me when you’re trying to buy a $3 beer and the bartender just shrugs because he has no change.
Using Credit Cards vs. Cash
Can you use your card? Sure, in the city. If you’re at Multiplaza Mall or a high-end restaurant in Casco Viejo, swipe away. But Panama is still a very cash-heavy society.
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Taxis do not take cards. Most small fondas (local eateries) do not take cards. If you’re buying a bus ticket at Albrook Mall, you’re paying cash.
A weird thing to watch out for is the "Foreign Transaction Fee." Even though the Panamanian currency exchange rate is 1:1 and no actual conversion is happening, some greedy banks still charge you a 3% fee because the transaction happened outside the U.S. Check your card's terms before you fly.
ATMs and the "Sistema Clave"
You’ll see the "Clave" logo everywhere. It’s the local inter-bank network. Most international cards (Visa, Mastercard, Amex) work just fine in these machines, but they will hit you with a fee.
In 2026, the standard ATM fee for foreign cards is usually around $5.25 per withdrawal.
The limit is often $250 or $500 per transaction. If you’re an expat living here, you’ll quickly learn that standing in line at the Banco Nacional or Banco General is a national pastime. Avoid the machines on payday (the 15th and 30th of every month) because they will run out of money.
What about other currencies?
If you are coming from Europe, Canada, or Colombia, do not expect to just walk into a store and use your Euros or Pesos. It won't happen.
You’ll need to find a Casa de Cambio. There are plenty in the airport (Tocumen), but their rates are usually terrible. You're better off using an ATM to get dollars directly. Outside of Panama City, finding a place to exchange physical foreign cash is like hunting for a unicorn.
Actionable Advice for Your Money in Panama
Forget the "exchange rate." It doesn't exist in the way you think it does. Just treat your U.S. dollars as the local currency.
Before you leave the airport, make sure you have at least $50 in small bills ($1s and $5s).
If you receive "Martinelli" coins (the $1 coins), spend them before you leave the country. No bank in the U.S. or Europe will take them, and you’ll just end up with a very heavy, very worthless souvenir.
Check your bank’s ATM withdrawal limits. Many travelers get stuck because they try to pay a $600 rent deposit in cash and find out their home bank limits them to $300 a day.
Finally, keep an eye on your coins. If you see a coin with a picture of an indigenous chief (Urracá) or the Spanish explorer Balboa, keep it! They are beautiful pieces of history that work just as well as a U.S. quarter for buying a cold soda on a hot day in Panama.