If you’re planning a trip, it’s normal for one of your first questions to be how payments work and what kind of money you should bring. Unlike other destinations in Latin America, Panama has a very unique monetary system that often raises questions among visitors.
That’s why, before you plan your budget, it’s best to understand how Panama’s currency works and what payment methods Panamanians use so you can enjoy a stress-free stay.
Panama’s currency is the Panamanian balboa (PAB), which was officially adopted in 1904. However, the U.S. dollar circulates officially alongside the balboa.
Both currencies are on par, so one balboa is worth exactly the same as one U.S. dollar. Additionally, the banknotes in circulation are U.S. dollars, while coins can be either balboas or U.S. dollars.
Thanks to this system, many tourists don’t need to make complicated currency conversions when paying for goods or services.
Although the U.S. dollar is widely used, the official Panamanian currency remains the balboa. For this reason, it is common to find both currencies in circulation in stores, restaurants, and other establishments.
One of the unique aspects of this country is that it does not issue its own banknotes. For this reason, U.S. dollars are used for most daily purchases.
On the other hand, Panamanian coins are part of the local monetary system. They have the same value as U.S. coins and are accepted without issue throughout the country.
In Panama, there are various payment methods available, such as credit and debit cards, which are accepted at hotels, restaurants, shopping malls, supermarkets, and most tourist businesses.
Visa and Mastercard are typically the most widely used options among international travelers. However, carrying some cash is best for paying at local markets, small shops, or in remote areas.
Having a clear idea of how much you’ll spend during your vacation can help you better organize your activities and avoid unexpected expenses.
The amount will depend on your travel style, as a daily budget for basic expenses can range from $40 to $80 per person, including food, local transportation, and some simple activities.
For example:
If you plan to visit islands, book guided activities, or take longer tours, it’s best to have some extra money on hand.
Before exchanging cash, keep these recommendations in mind:
Choosing well-located accommodations can make getting around much more convenient during your trip.
At Wynwood House, you’ll find fully furnished apartments in Panama with equipped kitchens, modern spaces, and everything you need for a comfortable stay.
Book your accommodation and plan your visit with greater peace of mind.
Now that you know how Panama’s currency works, it will be much easier to plan your expenses before traveling.
Having a clear understanding of payment methods, the use of the U.S. dollar, and the recommended budget will help you enjoy your stay with greater peace of mind.
Yes, although the official currency is the balboa, the U.S. dollar is legal tender throughout the country. Therefore, most tourists can make payments without needing to exchange money.
Yes, hotels, restaurants, shopping malls, and many other establishments accept credit and debit cards. However, it’s advisable to carry some cash for small purchases or visits to less crowded areas.
It depends on the type of trip and the activities you have planned. For basic expenses, many people budget between $40 and $80 per day, not including excursions or additional expenses.