This girl from Panama said that their currency is american dollars. How can that be true?

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The "L" Word

It is true. Panamanias use the U.S. dollar as their official currency since they gained independence from Colombia in 1903. The U.S. helped Panama win their independence by providing aid and threathening Colombia in return for the new nation to grant them the right to build the canal. The U.S. mlitary had a presence in Panama for over 96 years and the new nationa adopted the U.S. Dollar as their official currency. They refer to the dollar as a "Balboa" in reference to the Spanish explorer who first explored the isthmus.

Many foreign nations and territories have made the U.S. Dollar their official currency. Some include Ecuador, the Bahamas (along with the Bahamian Dollar), the British Virgin Islands, the Turks & Caicos Islands, East Timor, Palau, the Marshall Islands, and the Federated States of Micronesia.

Mika F

Actually, the Panamanian currency is the Balboa, that has equal value with the US dollar.

In practice, however, they use dollars. They have their own coins but use US dollars for all its paper currency.

Don't be so surprised, it's not the only case. Ecuador and El Salvador also have 'dollarized' their economies.
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Christina

Officially their currency is the Balboa but they use US money. This site says its so that visitors don't need to exchange their money. Since 1903 the exchange rate between the two currencies has been 1:1 so they can be used interchangeably.

wrso

yes it is true, Panama adopted the Dollar in 1904 when the construccion of Panama Canal was made by americans.

BAGOFSWAGS

"Many parts of the world accept American money as unofficial "local currency." "

Baloney - IT IS the official currency , by law, in dozens of countries outside the US.

cool.panamania

Because is is ...................DUH ! We call them Balboas (B/).

Lori M

It is true,The US dollar is the legal current currency within the country. This currency has been used in Panama since the country beginnings by means of a treaty negotiated with the United States in early 1900's.

the_lipsiot

Well it is true, because Panama adopted the US currency in 1904.

LEKLER

It is true, I from Panama, we all use US Dollar since 1904.

Nicole E

Yes it is and not onlt that, Panama has its own currency which is the Balboa...We have coins for the same value of the American coins..Same size, color and value..The only thing that changes is the face. It is so much a like that you can use Panamanian coins is soda machines here in the States....
Why are you in disbelief?

garrisonbight

Because it IS true... have you never heard of the Panama Canal... and how AMERIKA built it and operated it... the U.S. Dollar is the official currency of Panama...

Just because YOU never heard about it, doesn't mean it is not true.

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