The Balboa is one of the official currencies of Panama, along with the US Dollar. The name is in honor of Vasco Núñez de Balbo, who was a Spanish explorer. The Balboa is subdivided into 100 cents.
Economy
Panama has been experiencing economic and political difficulties in recent years. This has affected its economic growth and limited the average annual GDP to under 4%. The GDP rate could reach 6% if macroeconomic and political instability are achieved.
The government of Panama has poor tax revenues, which affect the budget, creating continuous deficits and limiting the public sector’s ability to fund infrastructure improvements and basic local services.
After the war between the United States and Afghanistan in 2001, Panama obtained financial help from the US, which has reduced the country’s international debt load.
History
Following independence in 1904, the Colombian Peso was replaced by the Panamanian Balboa as the circulating currency of the country.
The US Dollar, to which the Balboa is pegged, is also accepted in circulation at a fixed exchange rate of 1:1.
