The Panamanian balboa is the official currency of Panama. One balboa is divided into 100 centesimos. This currency is issued by the Central Bank of Panama. US dollars are also in circulation, with denominations of ¼, ½, and 1 balboa.
The balboa replaced the Colombian peso in 1904, when Panama declared its independence. Immediately after its introduction, the balboa was pegged to the US dollar, which is also a legal tender in Panama.
Panama has never had an official central bank. The Central Bank of Panama is one of two state-owned banks responsible for Panama's finances. It operates under the Ministry of Finance, which is authorized to supervise the country's banks.
