How does the value of a Panamánian balboa compare to that of a U.S. dollar, and why is this so? Write your answer in English. Find the answer in here: Panamá's official currency is called the balboa, in honor of the Spanish explorer, Vasco Núñez de Balboa, who is credited with being the first European to reach the Pacific Ocean from the American continent. The U.S. dollar is also legal currency in Panamá, and the two have been equivalent since 1903. So if you exchanged your U.S. money, you would get the exact same amount in Panamanian money. However, balboa bills don't even exist anymore. They are not being minted, and everyone uses U.S. dollars. What you will see in circulation are Panamanian coins. These are equivalent to U.S. coins, although they have different names. A centésimo is a penny, or one cent. There are coins in denominations of 5¢, 10¢, 25¢, and 50¢, with values corresponding to the U.S. nickel, dime, quarter, and half-dollar. You might be wondering why Panamá doesn't exclusively use its own currency. Well, for one thing, Panamá's economy is based largely on trade and commerce. Because the U.S. dollar is the currency used for international commerce, using it in Panamá makes trade much simpler for everyone involved—buyers, sellers, intermediaries, and banks. Also, the system of using U.S. dollars as the legal currency has brought Panamá monetary stability over the years. There's no worry about whether Panamanian currency is going to devalue, increase in value, or remain the same, and this provides a sense of security for investors and businesses in Panamá.

Question

How does the value of a Panamánian balboa compare to that of a U.S. dollar, and why is this so? Write your answer in English. Find the answer in here: Panamá's official currency is called the balboa, in honor of the Spanish explorer, Vasco Núñez de Balboa, who is credited with being the first European to reach the Pacific Ocean from the American continent. The U.S. dollar is also legal currency in Panamá, and the two have been equivalent since 1903. So if you exchanged your U.S. money, you would get the exact same amount in Panamanian money.  However, balboa bills don't even exist anymore. They are not being minted, and everyone uses U.S. dollars. What you will see in circulation are Panamanian coins. These are equivalent to U.S. coins, although they have different names. A centésimo is a penny, or one cent. There are coins in denominations of 5¢, 10¢, 25¢, and 50¢, with values corresponding to the U.S. nickel, dime, quarter, and half-dollar.  You might be wondering why Panamá doesn't exclusively use its own currency. Well, for one thing, Panamá's economy is based largely on trade and commerce. Because the U.S. dollar is the currency used for international commerce, using it in Panamá makes trade much simpler for everyone involved—buyers, sellers, intermediaries, and banks.  Also, the system of using U.S. dollars as the legal currency has brought Panamá monetary stability over the years. There's no worry about whether Panamanian currency is going to devalue, increase in value, or remain the same, and this provides a sense of security for investors and businesses in Panamá.

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The value of a Panamanian balboa is equivalent to that of a U.S. dollar, as they have been equal since 1903. However, currently, only Panamanian coins are in circulation, with denominations equivalent to U.S. coins. The reason for using U.S. dollars as legal currency in Panama is due to the country's economy being based largely on trade and commerce. By using the U.S. dollar, trade becomes much simpler for all involved parties. Additionally, the system of using U.S. dollars as legal currency has brought Panama monetary stability over the years, giving a sense of security to investors and businesses.