Converting from Panama Balboa (PAB) to Cuban Peso (CUP)

What is Panama Balboa (PAB)

The Panama Balboa (PAB) is the official currency of Panama, named after the Spanish explorer Vasco Núñez de Balboa. It was introduced in 1904 alongside the United States dollar (USD). In fact, the Balboa is pegged to the U.S. dollar at a 1:1 ratio, which means that one Balboa is equivalent to one U.S. dollar. This dual currency system helps stabilize the economy and facilitates trade, as the U.S. dollar is widely accepted within the country.

The Balboa is subdivided into 100 centésimos, similar to the dollar and cent system. Coins are issued in denominations of 1, 5, 10, 25, and 50 centésimos, as well as 1 Balboa coins. However, banknotes are only issued in U.S. dollar denominations, so you'll primarily see the USD in circulation when traveling in Panama.

Tourists and residents alike appreciate this currency system for its familiarity, safety, and stability. When traveling to Panama, it's important to understand that while you can transact in both currencies, most people will find it easier to use U.S. dollars for everyday purchases.

What is Cuban Peso (CUP)

The Cuban Peso (CUP) is the official currency of Cuba and has a complex history. The CUP is sometimes referred to as the "moneda nacional," which means national currency. It was introduced in 1915, replacing the Cuban dollar. Over the years, Cuba has seen various changes to its currency system, including the introduction of the convertible peso (CUC), which was officially phased out in 2021 in an effort to simplify the economy.

The Cuban Peso is subdivided into 100 centavos, similar to many other currencies. However, due to the historical context and economic restrictions, the value of the CUP is much lower than the U.S. dollar or the former convertible peso. As of recent years, the CUP has predominantly been used for local transactions, while tourists may find that prices are often displayed in U.S. dollars.

When converting money into Cuban pesos, it’s essential to be aware of the current exchange rates. The rate can fluctuate, so it’s advisable to check the most recent conversions ahead of your travels. As of now, many places in Cuba accept cash transactions only, and the local economy relies heavily on cash.

To convert from Panama Balboa (PAB) to Cuban Peso (CUP), you will need to look at the current exchange rate. Since PAB is pegged to the U.S. dollar, the conversion can be expressed as follows:

Exchange Rate (CUP/PAB) = (Value in CUP/Value in PAB)

For example, if the exchange rate is ＄1 PAB = 24 CUP＄, then ＄10 PAB would convert to ＄240 CUP＄.

Understanding these currencies will help you navigate your finances more easily, whether you're planning a trip or doing business in these regions.