If you’re visiting, moving to, or doing business in Panama, one of the first things that surprises people is the money.
Yes, Panama uses the US dollar but not in the way most people expect.
From coins with shields on them, to a $1 coin many tourists think is fake, this guide breaks down everything you need to know about Panamanian currency, so you don’t get confused (or embarrassed) at the register.
What Currency Does Panama Use?
Panama uses two currencies side by side:
- US Dollars (USD)
- Panamanian Balboa
Here’s the key thing to understand:
Panama does not print paper money.
All paper bills in circulation are US dollar bills.
Panama only issues coins, known as Balboas.
What Are Panamanian Coins?
Panamanian coins are called Balboas, and they are equal in value to US coins.
You’ll commonly see:
- 1 centésimo/centavo (same value as a penny or one cent)
- 5 centésimos/centavos (a nickel or five cents)
- 1 decimo/10 centavos (a dime or ten cens)
- 25 centavos (a quarter or twenty-five cents)
- 50 centavos (fifty cents)
- 1 Balboa (worth exactly $1 USD)
Important:
Panamanian coins are legal tender only in Panama, but they are accepted everywhere locally, alongside US coins.
The Easiest Way to Identify Panamanian Coins
This is the fastest and most reliable trick.
Look for the shield
Most Panamanian coins feature the Panamanian Coat of Arms on one side.
The coat of arms includes:
- A shield
- An eagle on top
- Symbols representing Panama’s sovereignty and history
If you see a shield, it’s a Panamanian coin, not a US one.
US coins never have shields like this.
Panamanian Coins vs US Coins: How to Tell Them Apart
At first glance, Panamanian coins can look very similar to US coins. Same size, same color, same value.
Here’s how to tell the difference quickly:
US Coins
- Feature US presidents (Washington, Lincoln, Roosevelt)
- Say “United States of America”
- Have state or eagle designs
Panamanian Coins
- Feature a shield / coat of arms
- Say “República de Panamá”
- Show “Centésimos” or “Un Balboa”
- Do not feature US presidents
Same size. Same value. Different country.
The $1 Balboa Coin (Why Everyone Gets Confused)
The $1 Balboa coin causes the most confusion especially for visitors.
Here’s what to know:
- It’s worth $1 USD
- Similar in size to a US $1 coin
- Often features Manuel Amador Guerrero, Panama’s first president
- Accepted everywhere in Panama
Common mistake:
Many tourists think it’s a token or foreign coin and refuse it but it’s real money.
Can You Use Panamanian Coins Outside Panama?
No.
- ❌ Panamanian coins are not accepted outside Panama
- ✅ US coins are accepted inside Panama
Travel tip:
Before leaving Panama, use up your Panamanian coins or keep a few as souvenirs.
Common Mistakes Newcomers Make With Panama Money
If you’re new to Panama, avoid these:
- Thinking Panama has its own paper bills
- Assuming Panamanian coins are worth less than US coins
- Rejecting the $1 Balboa coin by accident
- Taking Panamanian coins back to your country expecting to use them later
Panamanian coins and US coins are always equal in value in Panama.
Final Thoughts: Paying in Panama Made Simple
Once you understand how Panamanian currency works, it’s actually very simple:
- US paper bills = normal
- Coins may be US or Panamanian
- Shield = Panama
- Same value, same spending power
If you’re planning to move to Panama, shop, or live here long-term, this is one of those small details that makes everyday life much smoother.