The Panamanian balboa is pegged to the U.S. dollar at a 1:1 exchange rate. This means that the value of one Panamanian balboa is equivalent to one U.S. dollar. This is because Panama adopted the U.S. dollar as its official currency in 1904, and since then, the two currencies have been linked. The decision to peg the balboa to the U.S. dollar was made to provide stability and confidence in the country's economy, as well as to facilitate international trade and investment. As a result, the value of the Panamanian balboa is directly tied to the strength and stability of the U.S. dollar.
