Converting from Bermuda Dollar (BMD) to Panama Balboa (PAB)

What is Bermuda Dollar (BMD)

The Bermuda Dollar (BMD) is the official currency of Bermuda, a British Overseas Territory located in the North Atlantic Ocean. Introduced in 1970, it is pegged to the US Dollar (USD) at a one-to-one exchange rate, meaning that ＄1 BMD is equal to ＄1 USD. This stability facilitates trade and travel between Bermuda and the United States, making it a convenient currency for both locals and tourists.

The Bermuda Monetary Authority (BMA) is responsible for issuing currency and managing monetary policy in Bermuda. The BMD is subdivided into 100 cents, and it comes in both coin and banknote forms. Common denominations include ＄1, ＄5, ＄10, ＄20, ＄50, and ＄100 notes, along with coins that feature values of 1 cent, 5 cents, 10 cents, 25 cents, 50 cents, and ＄1.

While the Bermuda Dollar is primarily used within Bermuda, it is widely accepted in many businesses, especially those frequented by tourists. However, it is crucial for travelers to be aware that while the BMD is equivalent to the USD, the reverse does not hold true. Some establishments may not accept US Dollars, so visitors should ensure they have BMD for their transactions.

What is Panama Balboa (PAB)

The Panama Balboa (PAB) is the official currency in Panama and was introduced in 1904. It is named after Vasco Núñez de Balboa, a Spanish explorer who was the first European to see the Pacific Ocean from the Americas. The Balboa is pegged to the US Dollar (USD) at a 1:1 ratio, which means that one Balboa is equivalent to one US Dollar. This currency system helps streamline commerce and supports the close economic ties Panama maintains with the United States.

The Balboa is divided into 100 centesimos, and while coins of this denomination exist, paper bills are not issued in Balboas. Instead, the US Dollar is commonly used for transactions in Panama. Coins in circulation include denominations of 1, 5, 10, 25, and 50 centesimos, and ＄1 Balboa coins that resemble their US counterparts. Tourists will find that US Dollars are widely accepted without difficulty throughout the country.

When converting from Bermuda Dollars to Panama Balboas, one must first consider the exchange rates between BMD and USD, and then the USD to PAB conversion. Since both the BMD and PAB are pegged to USD at equal rates, the conversion process is relatively straightforward. For example, if 1 BMD equals 1 USD and 1 USD equals 1 PAB, then 1 BMD is effectively equal to 1 PAB. However, it’s advisable to check current rates and any associated fees before making a currency exchange to ensure the best deal.