The Panamanian balboa (sign: B/.; ISO code: PAB) is the official coined currency of Panama, which circulates alongside banknotes of the United States dollar. The currency is named in honor of Spanish explorer and conquistador, Vasco Núñez de Balboa. It is subdivided into 100 centésimos.

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Introduction Edit

The earliest indigenous artifacts hailing from Panama include Paleo-Indian projectile points. Rodrigo de Bastidas became the first European to explore the Isthmus of Panama, arriving in 1501. It was later explored by Christopher Columbus in 1502, and by Vasco Núñez de Balboa in 1513. The first permanent European settlement on the American mainland, Santa María la Antigua del Darién, was established in 1510 in the lands of modern-day Panama. The country was part of the New Kingdom of Granada (1513-1739) and the Viceroyalty of New Granada (1717-1819), two colonies of the Spanish Empire from the early modern era. Following the disestablishment of the Spanish Empire, Panama became annexed to Gran Colombia, the Republic of New Granada, the Granadine Confederation, the United States of Colombia, and then modern-day Colombia before gaining its independence in 1903.

While part of the Spanish Empire, the Spanish real was circulated as currency within the lands of modern-day Panama, which was subsequently replaced by the Colombian peso in 1847. The balboa and United States dollar were introduced a year following Panama's independence, in 1904.

History Edit

The balboa replaced the Colombian peso in 1904 after the country became independent from Colombia. The balboa has circulated alongside the United States dollar (which is also legal tender in Panama) at an exchange rate of 1:1 since the former's introduction.

Coins Edit

In 1904, the first series of Panamanian coins were introduced, which consisted of silver 2½, 5, 10, 25, and 50 centésimo coins. The weight of the coins was based on the value divided by two, with the 2½ centésimos coin having a mass of 1¼ grams, the 5 centésimo coin having a mass of 2½ grams, and so on. The small size of 2½ centésimo coin (1 cm in diameter) led to the coin being known as the "Panama Pill" or the "Panama pearl". In 1907, ½ and 2½ centésimo coins were minted in cupronickel, followed by cupronickel 5 centésimos in 1929. In 1930, coins with denominations of 1⁄ 10 , ¼, and ½ balboa were introduced, and were followed by the 1 balboa coin in 1931. These coins were identical in size and composition to the corresponding United States coins. In 1935, new bronze 1 centésimo coins were introduced, followed by a bronze 1¼ centésimo coin in 1940.

In 1966, Panama followed the United States in changing the silver composition of its coins by issuing cupronickel-clad-copper 1⁄ 10 and ¼ balboa coins, and .400 fine silver ½ balboa coins. The 1 balboa coin was issued for the first time since 1947 that year. In 1973, the new cupronickel-clad-copper ½ balboa coin was introduced. A later issue of the 1 balboa coin was made in 1982, but unlike its predecessors, it was composed of cupronickel and was slightly reduced in size.

In 2011, a bimetallic 1 balboa coin was put into circulation. A 2 balboa coin is expected to be issued in the future.

In addition to circulating issues, commemorative coins with values of 5, 10, 20, 50, 75, 100, 150, 200, and 500 balboas have been issued.

Banknotes Edit

In 1941, under the leadership of President Arnulfo Arias, Panamanian banknotes were issued. They were recalled only days later, which gave rise to the nickname, "The Seven Day Dollar". These notes, denominated in 1, 5, 10, and 20 balboas, were burned after the seven days, but some balboa notes have been found with collectors. These were the only Panamanian banknotes ever issued. Before and after this, banknotes of the United States dollar were used instead.

Exchange rates Edit



