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Money & currency

Money in Panama

Updated 2026-08-16

Money & Currency
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US Dollar (USD) / Balboa (PAB)

Currency code: PAB

Practical Money Tips

US Dollar and Panamanian Balboa Circulate Together

Panama uses both the US Dollar (USD) and the Panamanian Balboa (PAB) simultaneously — they are at a permanent 1:1 parity. In practice, USD bills are used everywhere; PAB coins exist alongside US coins. There is no need to exchange USD before arriving. EUR and GBP exchange readily at bank branches and exchange offices in Panama City — Banco Nacional de Panamá and Banistmo (an HSBC subsidiary) are reliable options, alongside exchange counters at Tocumen International Airport on both arrival and departure levels. Panama has one of the most developed banking systems in Latin America, hosting numerous international banks in its financial centre.

ATMs Are Exceptionally Abundant

ATMs are exceptionally abundant throughout Panama — one of the best-banked countries in Central America. Major national banks operate ATMs throughout Panama City, David, Boquete, Colón and the main Chiriquí towns, and Bocas del Toro has ATMs on Isla Colón. The San Blas (Guna Yala) islands, the Darién and remote parts of the Comarca Ngäbe-Buglé have little to no ATM access, so withdraw enough USD in a larger town before heading to any of them.

Excellent Card Acceptance in Panama City

Panama City has exceptional card acceptance — one of the best in Latin America. Visa and Mastercard are accepted at virtually all hotels, restaurants, malls and services, and Apple Pay and Google Pay work at a growing number of modern merchants, particularly in the upscale Marbella, Bella Vista and Casco Viejo areas. Outside the capital, Boquete, David and Santa Catalina have reasonable card acceptance. San Blas, the Darién and rural communities are primarily cash-only. A 10 percent restaurant service charge is often automatically added — check the bill before adding an extra tip.

Moderately Priced for an International Hub

Panama City is moderately priced for an international financial hub — pricier than Panama's rural provinces, but noticeably more affordable than most European or North American capitals for comparable quality. Casco Viejo's boutique hotels and restaurants sit at a premium over the wider city, while comida corriente set lunches remain an inexpensive everyday option throughout the country. San Blas island packages are typically quoted as an all-inclusive daily rate covering accommodation, meals and boat transfers, which makes budgeting for that leg straightforward even though it isn't cheap. Tipping: 10 percent service is often auto-added in Panama City restaurants — check the bill — and a modest daily amount is standard for guides.

Note: Always check current exchange rates before traveling. Currency exchange is available at airports, banks, and authorized money changers.

Common Money Questions

Do Apple Pay and Google Pay work in Panama?

Apple Pay and Google Pay work at modern merchants in Panama City, particularly in upscale neighbourhoods (Marbella, Bella Vista, Punta Pacífica) and Casco Viejo. Coverage is less consistent in smaller cities and rural areas. Carry USD cash for San Blas islands, Darién, and rural communities.

Do I need to bring USD to Panama or can I exchange EUR there?

Panama uses USD, so arriving with USD is most convenient. EUR and GBP exchange easily at banks and Tocumen airport. If arriving with EUR, exchange at city bank branches (better rates than airport kiosks). Wise and Revolut cards work well at Panama ATMs.

Is tipping expected in Panama?

In many Panama City restaurants, a 10 percent service charge is automatically added to the bill — check before tipping extra. Where it is not included, 10 percent is standard. A modest daily amount is appreciated for guides. Taxi drivers do not expect tips.

Can I use my card in Casco Viejo?

Yes — Casco Viejo (the historic district of Panama City) has good card acceptance, particularly at boutique hotels, upscale restaurants, and art galleries. Most establishments accept Visa and Mastercard. Some smaller local food stalls and parking attendants prefer cash.

Is cash necessary for the San Blas (Guna Yala) islands?

Yes — the San Blas islands are almost entirely cash-only. There are no ATMs on the islands. Package prices often include accommodation, meals, and boat transfers as a single daily rate. Bring USD cash to cover the full trip plus personal spending (drinks, souvenirs from Guna artisans). Withdraw USD in Panama City before departure.

Are Wise or Revolut useful in Panama?

Wise and Revolut work well in Panama — both support USD and function at Panama's extensive ATM network. They are particularly useful for avoiding foreign transaction fees on the excellent Panama City card infrastructure. Cash remains essential for remote areas.

Does Panama accept other Latin American currencies?

No — other Latin American currencies (Colombian pesos, Guatemalan quetzals, Costa Rican colones, and so on) are not accepted or exchangeable in Panama. Only USD and PAB are the currencies of daily use. Exchange from other Latin American currencies to USD before arriving in Panama.

Is Panama City expensive?

Panama City is moderately priced by regional standards — less expensive than several other Latin American capitals at the high end, but still with a developed city cost structure. Outside the capital, rural areas and the Azuero Peninsula are significantly cheaper.

Entry rules, visa types and practical notes live on the Panama overview.

Visaja keeps this page's contact details and visa guidance under continuous review — still, requirements can change at short notice, so confirm the essentials with the mission or the official government portal before you travel.