Panamanian Balboa

The Panama Balboa is the official currency of Panama. It is divided into 100 centésimos and has been pegged to the United States dollar since its introduction in 1904. The Balboa replaced the Colombian peso at a rate of 1:1, after Panama's independence from Colombia. The name "Balboa" was chosen in honor of Spanish explorer Vasco Núñez de Balboa. The Balboa is legal tender in Panama and is interchangeable with the dollar at Panama's numerous banks and money exchanges. Panama's coins, which were introduced in 1904, circulate alongside U.S. coins. One Balboa is equal to 100 centésimos. The smallest coin is the centésimo, worth one-hundredth of a Balboa. The largest coin is the one Balboa coin, which has a value of one dollar. Panama's paper currency, also introduced in 1904, consists of bills in denominations of 1, 2, 5, 10, 20, 50, and 100 Balboas. All Panamanian paper currency is printed by the U.S. Bureau of Engraving and Printing. Panama's first banknotes were issued by the Panama Railway Company in denominations of 1, 2, 5, 10, and 20 Balboas. These notes were similar in design and function to U.S. silver certificates. In 1929, the Banco Nacional de Panama began issuing its own paper currency, in denominations of 1, 2, 5, 10, 20, 50, and 100 Balboas. These notes were also similar in design to U.S. silver certificates. In 1941, Panama began issuing paper currency in denominations of 1, 2, 5, 10, 20, and 50 centésimos, and 1, 5, 10, 20, and 50 Balboas. These notes were similar in design to U.S. Federal Reserve notes. In 1946, the Banco Nacional de Panama began issuing notes in denominations of 100, 500, and 1,000 Balboas. These notes were similar in design to U.S. Treasury notes. In 1964, Panama began issuing its current paper currency, in denominations of 1, 5, 10, 20, 50, and 100 Balboas. These notes are similar in design to U.S. Federal Reserve notes, with the addition of the words "Cincuenta Aniversario" ("Fifty Years") to commemorate the fiftieth anniversary of Panama's independence.