Along with the United States dollar, the Panamanian balboa is one of the official currencies of Panama. It was named for the Spanish explorer and conquistador Vasco Núñez de Balboa, and the balboa is subdivided into 100 centésimos.
Background of the Panamanian Balboa
After achieving independence, the balboa replaced the Colombian peso. Since its introduction, it has been tied to the United States dollar at an exchange rate of 1:1 and has circulated alongside the US dollar since. The National Bank of Panama is one of two government-owned banks and was responsible for nonmonetary aspects of central banking in Panama.
In 1904, silver coins in denominations of 2+1⁄2, 5, 10, 25, and 50 centésimos were introduced. These coins were related to the 25-gram 50 centésimos, making the 2+1⁄2 centésimos coin 1.25 grams. Its small size resulted in nicknames like the “Panama pill” and the “Panama pearl.”
In 1907, more Panamanian coins were issued, with the introduction of copper-nickel 1⁄2 and 2+1⁄2 centésimo coins, which preceded copper-nickel 5 centésimo coins in 1929. In 1930, coins for 1⁄10, 1⁄4, and 1⁄2 balboa were introduced, followed by 1 balboa in 1931, which were identical in size and composition to the equivalent U.S. coins.
Features of the Panamanian Balboa
Pegged to the U.S. Dollar
The balboa has been pegged to the U.S. dollar at a 1:1 exchange rate since its inception. This means that 1 balboa is always equal to 1 U.S. dollar. This peg has been in place since 1904, providing stability and ease of use for residents and visitors.
Coins and Banknotes
The balboa is primarily issued in coins. Balboa coins are available in denominations from 1 to 5 centésimos (equivalent to cents), and 1/10, 1/4, 1/2, and 1 balboa. While Panama does not issue its own banknotes, U.S. Federal Reserve Notes are used for paper currency and larger transactions. This dual-currency system allows for seamless financial operations within the country.
Design and Symbolism
Balboa coins feature various national symbols and historical figures. For example, the 1 balboa coin often depicts Vasco Núñez de Balboa himself. The designs reflect Panama’s rich history and cultural heritage.
Silver Panamanian Balboa Coin Designs
1/4 Balboa Coin (1930-1962)
- Obverse: Features the Panamanian coat of arms with nine stars representing the provinces at the time. The motto “PRO MUNDI BENEFICIO” is inscribed below the design.
- Reverse: Depicts Vasco Núñez de Balboa in armor, facing left, surrounded by the denomination “VN CUARTO DE BALBOA” and a wreath.
1/2 Balboa Coin (1930-1962)
- Obverse: Similar to the 1/4 balboa coin, featuring the national coat of arms and inscriptions.
- Reverse: Depicts Vasco Núñez de Balboa in armor, facing left, with the denomination “MEDIO BALBOA” inscribed around the bust and a wreath.
1 Balboa Coin (1966-1974)
- Obverse: Features the Panamanian coat of arms, as well as a shield divided into four sections, depicting symbols of Panama’s history and economy. Above the shield is the national bird, a harpy eagle, holding a scroll with the motto “Pro Mundi Beneficio” (For the Benefit of the World). The legend reads “REPUBLICA DE PANAMA” above and the denomination “UN BALBOA” below.
- Reverse: Displays an armored bust of Vasco Núñez de Balboa, the Spanish explorer after whom the currency is named. The design is detailed, showing Balboa in a helmet and armor, facing left.
20 Balboas Coin (1974)
- Obverse: Like other issues, the 20 Balboas coin features the national coat of arms of Panama with the inscription “20 BALBOAS” below. A small inscription beneath the shield identifies the mint and the composition: “LEY 0.925 FM” (92.5% silver).
- Reverse: Honors Simón Bolívar, a key figure in Latin America’s independence movements. The reverse shows a bust of Bolívar with the inscription “SIMON BOLIVAR 1783-1830” above and the date “1974” below. This coin is notable for its large size and high silver content, containing nearly four troy ounces of silver.
