1 USD to PAB - US Dollars to Panamanian Balboa Exchange Rate (2024)

FAQs

1 USD to PAB - US Dollars to Panamanian Balboa Exchange Rate? ›

Panama's official currency is the Panamanian Balboa (PAB), which was introduced in 1904. The Balboa has parity with the United States Dollar (USD), meaning they have the same value. However, you won't find Balboa banknotes in circulation, as they are only issued as coins.

Panama's official currency is the Panamanian Balboa (PAB), which was introduced in 1904. The Balboa has parity with the United States Dollar (USD), meaning they have the same value. However, you won't find Balboa banknotes in circulation, as they are only issued as coins.

So is Panama expensive? Well, it's not the most expensive country in Central America – that prize goes to Costa Rica, closely followed by Belize – but thrifty travelers will need to plan carefully and sacrifice a few home comforts to keep costs down.

Panama's official currency is the balboa. The rate of exchange for the balboa has always been tied to the US dollar—one dollar equals one balboa. Panama does not, however, print its own paper currency and instead uses the US dollar as legal tender.

The average salary in Panama is 25,400 PAB (Panamanian Balboa) per year, which is approximately 25,509 USD as per the exchange rates of April 2023. This is less than developed countries like the United States, South Korea, and the UK.

Can I pay with US dollars in Panama? ›

Panama uses both the Panamanian balboa and the US dollar as its official currencies. Both are accepted for all types of transactions. Panama doesn't have a central bank and can't create money out of thin air. It must obtain their dollars by producing real goods or services.

One of my favorite features about co*kes here in Panama is the cost. You can find a 16 oz co*ke anywhere from $0.50-$2.00. The standard price for a co*ke is about $0.75.

As we've seen, the official currency in Panama is PAB. If you carry US Dollars with you on your trip, you'll probably need to exchange it before you can spend. Sometimes when you're away on a trip abroad you'll find that merchants will take payments in a selection of major foreign currencies.

Most travelers bring a small amount of US cash with them and withdraw from ATMs as they need it along they way. ATMs are readily available in the larger towns and cities.

The PAB is a relatively stable currency due to Panama's strong economic fundamentals and its historical link to the USD, which is also legal tender in the country.

History. The balboa replaced the Colombian peso in 1904 following the country's independence. The balboa has been tied to the United States dollar (which is also legal tender in Panama) at an exchange rate of 1:1 since its introduction and has always circulated alongside dollars.

For instance, a one-bedroom apartment in Panama averages $800 per month, compared to $1,800 in the US—a difference of over 120%. In 2022, the average house price in the US was $348,079, compared to just $95,000 in Panama.

You can expect to spend around $5 to $30 per person for a meal. Now, let's talk about how much you can expect to spend per day in Panama. For budget travelers, a daily budget of $30 to $50 should be sufficient to cover accommodation, food, transportation, and some activities.