The Panamanian balboa is tied to the US dollar at a fixed rate of 1:1, meaning that 1 Panamanian balboa is equal in value to 1 US dollar. This is because Panama does not have its own currency and has used the US dollar as legal tender since 1904. Due to this long-standing monetary relationship, the value of the Panamanian balboa is directly linked to the value of the US dollar. This fixed exchange rate provides stability and predictability for both domestic and international transactions in Panama.
