Money in Panama
Thursday, April 22, 2010 at 12:24
I read that Panama uses the US dollar. Do they not have they own currency? Did they ever have their own currency? If so, why did they change to the US dollar? It seems like a crazy idea for a country to have its main currency controlled and printed elsewhere!
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Is it really?
Thursday, April 22, 2010 at 12:29
Maybe the Panamanian currency is really the Balboa... they mint their own coins but use US money for bills. They value is the same as the US Dollar.
So there are several questions:
Is the Panamanian currency REALLY the US Dollar or is it really the Balboa pegged to the US Dollar. Either way what happens if they decide to use non-US currency or change the exchange rate of the Balboa to the Dollar?
Assuming the currency is really the US Dollar, what happens when Panama has its own economic crisis?
Thursday, April 22, 2010 at 12:33
"Is the Panamanian currency REALLY the US Dollar or is it really the Balboa pegged to the US Dollar"
Well surely if they were still using the Balboa then prices would be shown in that and people would be using it. When was the last time people were paying with Balboas (?) on the streets?
Thursday, April 22, 2010 at 12:41
It seems they use both?
"The balboa replaced the Colombian peso in 1904 following the country's independence. The balboa has been tied to the US dollar (which is legal tender in Panama) at an exchange rate of 1 Balboa to 1 Dollar since its introduction and has always circulated alongside dollars."
The Balboa is "pegged" to the dollar so as to give it value, to give it meaning, because in such a small country with a small economy its currency means little or nothing in the grander scheme of things. This is done to stabilize the value of the currency and it makes trade and investments between the US and Panama easier.
is it true
Thursday, April 29, 2010 at 03:51
I don't know that whether they use US dollar or another currency
Money is never simple!
Friday, April 30, 2010 at 08:08
That is a nice description of how you see things. But, what is the true underlying currency?
When you open a bank account it is stored in Dollars or Balboas? What happens when the Balboa is devalued?