The value of a Panamanian balboa is directly tied to that of a U.S. dollar because Panama uses the U.S. dollar as its official currency. The Balboa is not issued in paper form, but rather in coin denominations, which are at parity with their U.S. counterparts. This means that one balboa is equal in value to one U.S. dollar. The reason behind this is that in 1903, Panama adopted the U.S. dollar as its official currency when it gained independence from Colombia. This arrangement has been maintained ever since, ensuring stability and ease of trade between the two countries. Thus, the value of a Panamanian balboa and a U.S. dollar is the same, as both currencies are used interchangeably in Panama.
