Panamanian balboa facts for kids

Quick facts for kids Panamanian balboa
1⁄2 balboa (front) 1⁄2 balboa (back)
ISO 4217 Code	PAB
User(s)	Panama (alongside the U.S. dollar)
Pegged with	U.S. dollar at par
Subunit
1⁄100	Centésimo
Symbol	B/. or ฿.
Coins	1 and 5 centésimos, 1⁄10, 1⁄4, 1⁄2, and 1 balboa
Banknotes	None (U.S. banknotes are employed instead, although denominated in balboas)
1 Panama now uses U.S. dollar notes.

The balboa (sign: B/.; ISO 4217: PAB) is the official money of Panama, used together with the United States dollar. It is named after Vasco Núñez de Balboa, a famous Spanish explorer. The balboa is divided into 100 smaller parts called centésimos.

History

The balboa became Panama's money in 1904. This happened right after Panama gained its independence. Since then, the balboa has always been linked to the United States dollar at a 1:1 value. This means one balboa is always worth one U.S. dollar. Both currencies are used side-by-side in Panama.

Panama has never had its own official central bank. A central bank usually handles a country's money supply. Instead, the National Bank of Panama, which is a government-owned bank, helps manage some of these tasks. Another group, the National Banking Commission, helps supervise banks in Panama.

Coins

Current Coins

Panama uses several coins for the balboa. These coins are very similar in size and what they are made of to U.S. coins.

Denomination	Obverse		Reverse	Diameter	Thickness	Mass	Composition	Edge	Minted
Un centésimo (B/. 0.01)		Urracá	Denomination	19.05 mm	1.55 mm	3.11 g	Copper 95% Tin/Zinc 5%	Smooth	1935–1982
						2.50 g	Copper 2.5% Zinc 97.5%		1983–Present
Cinco centésimos de balboa (B/. 0.05)		Denomination	Panamanian Coat of Arms	21.21 mm	1.95 mm	5 g	Copper 25% Nickel 75%	Smooth	1929–Present
Un décimo de balboa (B/. 0.10)		Vasco Núñez de Balboa		17.91 mm	1.35 mm	2.268g	Copper 91.67% Nickel 8.33%	118 reeds	1966–Present
Un cuarto de balboa (B/. 0.25)				24.26 mm	1.75 mm	5.67g		119 reeds
Medio balboa (B/. 0.50)				30.61 mm	2.15 mm	11.34 g		150 reeds	1973–Present
Un balboa (B/. 1)			Liberty with Panamanian Coat of Arms	38.1 mm	2.58 mm	22.68 g		reeded	1973–2010
			Panamanian Coat of Arms	26.5 mm	2 mm	7.2 g	Outer ring: Nickel-plated steel Center: Nickel-brass-plated steel	reeded with inscription	2011–Present

Older Coins

In 1904, Panama first made silver coins in values like 2½, 5, 10, 25, and 50 centésimos. The 2½ centésimos coin was very small, weighing only 1.25 grams. Because of its tiny size, people called it the "Panama pill" or the "Panama pearl."

Later, in 1907, coins made of copper-nickel were introduced. These included the ½ and 2½ centésimo coins. In 1929, 5 centésimo coins also started being made from copper-nickel.

In the 1930s, coins for 1/10, 1/4, and 1/2 balboa were made. A 1 balboa coin followed in 1931. These coins were exactly like the matching U.S. coins in size and what they were made of. In 1935, bronze 1 centésimo coins were introduced, and in 1940, 1¼ centésimo coins were minted.

In 1966, Panama changed the materials for its silver coins, just like the U.S. did. For example, the 1/10 and 1/4 balboa coins were made with copper-nickel. The 1/2 balboa coin used less silver. A 1 balboa silver coin was also made that year, the first since 1947.

By 1973, the 1/2 balboa coins were made of copper-nickel. The 2½ centésimos coin was brought back in 1973, but it was stopped two years later because people didn't use it much. In 1983, 1 centésimo coins changed from copper to copper-plated zinc, just like the U.S. cent. Larger 1 balboa coins have been made since 1982, still made of copper-nickel.

Today, the 1 and 5 centésimo, 1/10, 1/4, and 1/2 balboa coins are the same weight, size, and material as the U.S. cent, nickel, dime, quarter, and half dollar. In 2011, new 1-balboa coins were made from two different metals. They are the same size as the U.S. dollar coin.

Panama has also made special commemorative coins to celebrate events or people. These coins have values like 5, 10, 20, 50, 75, 100, 150, 200, and 500 balboas. In 1971, a 20 balboa silver coin was made to honor Simón Bolívar. It was the largest silver coin in the world at that time!

Banknotes

Panama does not print its own paper money. Instead, it uses U.S. banknotes for all its cash needs.

In 1941, Panama's President Arnulfo Arias tried to start a central bank to print paper money. The bank was created on September 30, 1941. However, President Arias was removed from power in October. The new banknotes were then taken out of circulation and most were destroyed.

Exchange Rate

See also

In Spanish: Balboa (moneda de Panamá) para niños

• Economy of Panama