Money, cards and ATMs in Panama

One currency with two names

• The balboa is Panama's official currency and it exists only as coins. There are no balboa banknotes and there never have been.
• Every note in circulation is a US dollar, and the two are pegged at exactly 1 balboa = 1 US dollar.
• Prices are quoted as "B/." or "$" interchangeably and mean the same thing. A menu showing B/. 12 wants twelve dollars.
• Balboa coins are the same size and weight as US coins and circulate alongside them. The quarter-balboa and the US quarter are used as one coin.
• The catch: balboa coins are worthless outside Panama. Spend them before you leave. Notes are fine anywhere.

Cards and cash

• Cards work in Panama City, hotels, malls and restaurants. Amex is less widely taken than Visa and Mastercard.
• Cash rules outside the city, and completely so in Bocas del Toro, Guna Yala and small towns. Take dollars out before you leave the capital.
• Small notes matter. A hundred-dollar note is a problem in a village, and often refused.
• ATMs are common in cities and rare on islands. Withdrawal fees are charged by the local bank on top of yours.
• Decline the conversion when a machine or a card terminal offers to bill you in your home currency.

At the border

• You may be asked to show 1,000 US dollars or a credit card. Have the card, and know that it satisfies the requirement.

Tipping

• Restaurants often add 10%. If not, 10% is normal.
• Taxi fares are negotiated, not tipped.