Money, Budget, and Shopping in Panama

Money

Currency

Currency: balboa (100 centésimos) and US dollar (100 cents).

Banknotes: $1, $2, $5, $10, $20, $50, and $100.

Coins:

-- Balboa: 1 and 5 centésimos de balboa + 1/10, 1/4, 1/2, 1 and 2 balboas.

-- US dollar: 1, 5, 10, 25, and 50 cents + $1.

Exchange:

Panama has a unique currency system, blending two currencies: the Panamanian balboa and the US dollar.

The balboa was introduced after the country's independence in 1904, replacing the Colombian peso at parity with the US dollar—a relationship that remains today. While balboa coins have always been in circulation, banknotes have never been issued in balboas (except for a very brief period in 1941), and US banknotes are used instead. In practice, people may refer to US banknotes as balboas or call balboa coins "dollars."

Exchange

Foreign currencies exchange poorly in Panama, so it’s essential to bring a supply of US dollars in small denominations or, as always, rely on ATMs, which are widely available. Banks are typically open weekdays from around 9:00 AM to 4:00–5:00 PM and Saturday mornings.

Payment Methods

Card payments are common and widely accepted, but watch out for bank fees if you make too many small purchases or withdrawals. For daily expenses, it’s best to carry cash in US dollars.

Returning Home

Since you’ll be using US dollars during your trip, there’s no issue with exchanging leftover currency later or saving it for another trip.

Budget

Like many other Latin American countries, Panama remains relatively affordable to travel in—nothing like its pricier neighbor, Costa Rica. If you use local transport, eat at small restaurants or markets, and stay in budget accommodations, you can get by on 25 €–40 per day (or even less if you stick to the basics) for two people. However, for more comfort and convenience, a slightly higher budget is realistic.

What Can Be Expensive

The San Blas Islands.

What Can Be Affordable

A weak US dollar exchange rate against other currencies.

Traveling, eating, and sleeping "local."

Price Range

Budget double room: just under $15–20 for basic comfort and service.

Mid-range double room: $25–30 for a better standard.

Local restaurant meal: under $5 for a daily special or basic menu.

Tourist restaurant meal: $12 and up.

Budget car rental: roughly $30–40 per day for a basic vehicle, at least double for a 4x4.

Local bus: around $2–3 per 100 km.

Urban taxi:

Bargaining and Tipping

Bargaining

Tipping

Panama follows the American system, where service is usually not included. You can leave 10–15% for servers in restaurants or bars, plus a small amount for taxi drivers, porters, and other staff.

Shopping and Souvenirs

In Panama, you can shop for two main types of items: tax-free consumer goods (especially at Colón) and local handicrafts to bring home as souvenirs, like the colorful fabrics made by the Kuna people (the famous mola).