Converting from Panama Balboa (PAB) to US Dollar (USD)

What is Panama Balboa (PAB)

The Panama Balboa (PAB) is the official currency of Panama. It was introduced in 1904 and is named after the Spanish explorer Vasco Núñez de Balboa. The Balboa was introduced alongside the US Dollar, and these two currencies are used interchangeably within the country.

The Balboa is subdivided into 100 centésimos, similar to how the dollar is divided into 100 cents. What is unique about the Balboa is that it is pegged to the US Dollar at a 1:1 exchange rate. This means that 1 PAB is always equivalent to 1 USD. The Balboa exists only in coin form, while the US Dollar is used for banknotes. Visitors to Panama will often find that businesses and individuals prefer to transact in US Dollars, given its widespread acceptance and stability.

Although the Balboa is an essential part of Panamanian currency, most international transactions are conducted using the US Dollar. Therefore, understanding its conversion to USD is crucial for travelers and investors alike.

What is US Dollar (USD)

The United States Dollar (USD) is the official currency of the United States and is one of the most widely used currencies in the world. It is denoted by the symbol ＄ and is subdivided into 100 cents. The USD came into existence in 1792 with the Coinage Act, and it has become the world's primary reserve currency.

The USD is printed and issued by the US Department of the Treasury, and its value is influenced by various factors, including economic stability, interest rates, and inflation. As a fiat currency, its value is not backed by a physical commodity like gold or silver. Instead, it is supported by the general trust and confidence people place in the US government and its economy.

The US Dollar serves as a global benchmark for trade and finance, impacting currencies worldwide. It is commonly used in international transactions, making it important for businesses involved in exports and imports.

Converting PAB to USD

Since the Panama Balboa is pegged directly to the US Dollar at a 1:1 exchange rate, converting between these two currencies is straightforward. If you want to convert a specific amount of PAB to USD, you simply take the amount in Balboas and consider it the same in US Dollars.

In formula terms, this can be represented as follows:

Amount in USD = Amount in PAB

Thus, if you have 100 PAB, you will have 100 USD after conversion. This simplicity makes financial transactions in Panama relatively easy for travelers and businesses, as they do not need to worry about fluctuating exchange rates when dealing with PAB.