Panamanian Balboa

Overview

The Balboa is one of the official currencies of Panama, along with the US Dollar. The name is in honor of Vasco Núñez de Balbo, who was a Spanish explorer. The Balboa is subdivided into 100 cents.

Economy

• Panama has been experiencing economic and political difficulties in recent years. This has affected its economic growth and limited the average annual GDP to under 4%. The GDP rate could reach 6% if macroeconomic and political instability are achieved.
• The government of Panama has poor tax revenues, which affect the budget, creating continuous deficits and limiting the public sector’s ability to fund infrastructure improvements and basic local services.
• After the war between the United States and Afghanistan in 2001, Panama obtained financial help from the US, which has reduced the country’s international debt load.

History

• Following independence in 1904, the Colombian Peso was replaced by the Panamanian Balboa as the circulating currency of the country.
• The US Dollar, to which the Balboa is pegged, is also accepted in circulation at a fixed exchange rate of 1:1.