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Panamanian Balboa (PAB)

Contents

  1. Unveiling the Panamanian Balboa
  2. Introduction to the Currency:
  3. Historical Evolution:
  4. Seven Days Arias Balboa Banknotes:
  5. The Economic Landscape of Panama
  6. Panama Canal and Economic Vitality:
  7. Political History and Economic Impact:
  8. Current Economic Outlook:

Exploring the Panamanian Balboa (PAB): Currency, History, and Economic Significance

Unveiling the Panamanian Balboa

Introduction to the Currency:

The Panamanian balboa (PAB) serves as the official currency of the Republic of Panama and shares parity with the U.S. dollar (USD). Issued solely in coin form, balboas are divided into 100 centesimos, paying homage to Vasco Nunez de Balboa, the Spanish explorer and founder of Panama's first European settlement.

Historical Evolution:

Introduced in 1904 post-Panama's independence from Colombia, the balboa replaced the Colombian peso. Initially, silver coins were minted in various denominations, followed by commemorative coins to mark significant milestones in Panama's history.

Seven Days Arias Balboa Banknotes:

In 1941, President Arnulfo Arias authorized the issuance of private currency banknotes, resulting in the creation of the Central Bank of Issue of the Republic of Panama. However, a military coup shortly afterward led to the cessation of banknote issuance, making surviving "Seven Days’ Notes" rare collector's items.

The Economic Landscape of Panama

Panama Canal and Economic Vitality:

Positioned as a critical link between North and South America, Panama draws substantial revenue from the Panama Canal tolls. The canal, completed in 1914 under U.S. oversight, remains a linchpin of global trade and commerce.

Political History and Economic Impact:

Panama's journey to democracy was marred by political instability, military coups, and U.S. interventions. Despite challenges, Panama's economy witnessed growth, notably with the canal's expansion in 2016 contributing to GDP growth and minimal inflation.

Current Economic Outlook:

While Panama experiences economic growth, disparities in wealth distribution persist. The Panama Canal continues to underpin the economy, reflecting in stable GDP growth and minimal inflation rates.