MCQ Detailed View

The official currency of Panama is the Balboa, with the currency code PAB. It was introduced in 1904, the same year Panama adopted the United States Dollar (USD) as legal tender. Today, the Balboa circulates alongside the US Dollar, with both currencies used interchangeably at a fixed exchange rate of 1 Balboa = 1 USD.

Interestingly, while Balboa coins are minted and widely used in Panama, there are no Balboa banknotes; instead, the US Dollar serves as the paper currency. This makes Panama one of the few countries in the world with a dual currency system directly linked to the US Dollar.

Key Facts about Panama’s Currency:

• Official Currency: Balboa (PAB)


• Introduced: 1904


• Exchange Rate: 1 Balboa = 1 US Dollar


• Coins: Issued in centésimos (1 Balboa = 100 centésimos)


• Banknotes: US Dollars are used instead of Balboa notes


• Unique System: Dual currency usage with USD

For general knowledge and job test preparation, remember that the currency of Panama is the Balboa, used alongside the US Dollar, making its monetary system unique in Latin America.