💰 Quick Context: The US Dollar & Panamanian Balboa
Panama uses the US Dollar (USD) as its paper currency and the Panamanian Balboa (PAB) for coins. The Balboa is pegged 1:1 to the dollar, and Balboa coins are the same size and weight as US coins. They circulate interchangeably. No conversion needed. A meal at a local restaurant costs $5–15, a mid-range hotel night $80–150, and a taxi ride across Panama City $3–8. If you are coming from the US, your cash works here without any exchange.
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Order USD → CEI Currency ExchangeThe Dollar Economy & Balboa Coins
USD is the paper currency. Panama uses US dollar bills for all banknotes. There are no Balboa banknotes. Americans will feel right at home with the currency. Panama mints its own Balboa coins (centesimos and Balboas) in the same size and weight as US quarters, dimes, nickels, and pennies. They are completely interchangeable with US coins. You will receive a mix of both in change, and either works everywhere.
No currency exchange is needed if you are arriving from the US with dollars. International visitors from non-USD countries should exchange their home currency for USD before arriving, or withdraw dollars from Panamanian ATMs. Since there is no conversion between Panama's currency and the dollar, DCC (Dynamic Currency Conversion) is not an issue here. Some ATMs charge a flat withdrawal fee ($3–5 per transaction), and your home bank may add its own international ATM fee.
Cash vs. Card: What to Expect in Panama
Panama City is increasingly card-friendly. The banking district, Casco Viejo's upscale restaurants and bars, shopping centres (Multiplaza Pacific, Albrook Mall, Metromall), supermarkets (Super 99, Riba Smith), and hotel chains all accept Visa and Mastercard. You can handle most hotel and restaurant spending with a card in the capital.
Cash is still king outside the modern economy. Most Panama City taxis do not accept cards (Uber is the card-friendly alternative). Local buses, street food vendors near Casco Viejo and Avenida Central, neighbourhood tiendas, and produce markets are all cash-only. In Casco Viejo itself, upscale restaurants and bars take cards, but many smaller vendors and street stalls require cash.
Remote areas are very cash-dependent. The San Blas (Guna Yala) Islands have no ATMs and no card payments at all. Bring enough cash for your entire stay ($20–30 per night for basic island accommodation, plus food and boat transfers). Bocas del Toro town has a few ATMs and some businesses accept cards, but outer islands are cash-only. Highland towns like Boquete and El Valle accept cards at hotels and larger restaurants, but smaller shops prefer cash. Keep $50–100 per day in small bills ($1, $5, $10, $20) since many vendors cannot break $50 or $100 notes.
How to Get USD for Your Panama Trip
Panama has used the US dollar as its primary circulating currency since 1904 (the local Balboa exists technically and circulates only as coins for amounts under $1; one Balboa is pegged 1:1 with USD). For US travelers this makes Panama unusually simple: every business prices in USD, every ATM dispenses USD, every restaurant gives change in USD plus the occasional Balboa coin. Cards work at Panama City's banking district, Multiplaza Pacific and Albrook Mall, Casco Viejo's upscale restaurants, the Super 99 and Riba Smith supermarkets, and most chain hotels. Cash still owns the rest: Panama City taxis (Uber is the card alternative), local buses, street food vendors, neighborhood tiendas, the entire San Blas (Guna Yala) Islands economy, Bocas del Toro outer islands, and Boquete-area smaller shops. Pack USD and treat in-country ATMs as a top-up.
Bring USD before you fly
Panama is the rare country where pre-ordering local currency is meaningless: USD is local currency. The straightforward setup is to pack USD in clean small bills ($1, $5, $10, $20) for taxi fares, market vendors, San Blas Islands stays, and Bocas del Toro outer-island spending. Small bills are critical: pupusería-style food stalls, San Blas island operators, and boat captains often can't break $50 or $100 notes. A currency-exchange service like CEI Currency Exchange is unnecessary unless you specifically want pristine new-series small bills shipped (free at any US bank). Panama does not have a Bank of America Global ATM Alliance partner. The cleanest setup for any Panama trip: pack USD in small bills for San Blas, Bocas, and rural Panama; use a Wise card at Panama City restaurants and hotels; and pull USD from Banco General or BAC Credomatic ATMs as needed.
Withdraw USD from a Panamanian bank ATM
Once you're on the ground, every ATM in Panama dispenses USD. Banco General, Banistmo, BAC Credomatic, Banco Nacional de Panamá, and Multibank all give the actual rate (1:1 USD-to-USD for US debit cards). Most charge a per-transaction operator fee for foreign cards (typically $3–5, posted on the screen before you confirm). Withdrawal limits run roughly $300–500 per transaction. ATMs cluster around Panama City (the banking district, Multiplaza, Casco Viejo's edges), at PTY (Tocumen International) airport arrivals, in David, and in the Bocas del Toro town center. Coverage is essentially zero on the San Blas Islands and on Bocas's outer islands. Two procedural rules: stick to ATMs inside bank branches, malls, or major hotels rather than street-facing standalones; and decline DCC every time the screen offers "charge in USD" — meaningless since both your card and the country use USD. See the Best ATMs section below for the bank-by-bank lineup. Want to know what a Banco General withdrawal will cost on your card? Drop it into our ATM fee calculator.
Airport counters & resort exchange windows
Because Panama uses USD, the country has very few currency-exchange counters; a few at PTY targeting visitors carrying EUR, GBP, or other Latin American currencies. If you arrive with USD, ignore them. The standalone independent ATMs at smaller hotel arcades and inside Casco Viejo tourist hubs add DCC pitches on top of the standard $3–5 operator fee. Stick to bank-branded ATMs at Banco General, Banistmo, BAC Credomatic, Banco Nacional, or Multibank; decline DCC; and pack plenty of small USD bills for the islands. Panama does not yet have a city-specific guide on this site, but the Best ATMs section below covers the bank lineup.
For a side-by-side comparison of every method (bank wire, travel card, pre-order, ATM, exchange counter) including USD-to-USD timing tips, see our complete Getting Currency guide →.
Best ATMs to Use in Panama
Panama's major banks operate ATMs throughout the country, dispensing US dollars. These machines are reliable and typically charge lower fees than standalone ATMs. Your home bank may still charge its own international ATM fee.
Banco General
Panama's largest private bank with the most extensive ATM network. Found throughout Panama City (banking district, Casco Viejo, Albrook), at Tocumen International Airport (PTY), and in most towns nationwide. Reliable machines with English language options.
Recommended
Banistmo
Part of the Bancolombia group, with wide ATM coverage across Panama. Found in commercial areas, shopping centers, and bank branches throughout Panama City and major towns including David, Chiriquí.
Recommended
BAC Credomatic
A major Central American bank with a strong presence in Panama. ATMs located in malls, commercial districts, and near popular tourist areas. Part of the same network across Costa Rica, Nicaragua, and Honduras.
Recommended
Banco Nacional de Panamá
Panama's state-owned bank with branches and ATMs even in smaller towns where private banks may not have a presence. A particularly useful option in rural areas, Bocas del Toro, and the Azuero Peninsula.
Recommended⚠ ATM Fees to Watch For
Since Panama uses US dollars, Dynamic Currency Conversion (DCC) is not an issue here. However, some ATMs charge a flat withdrawal fee of $3–5 per transaction. Your home bank may also charge its own international ATM fee on top of that. Banco General and Banistmo tend to charge lower fees than standalone machines. To minimize costs, withdraw larger amounts less frequently and use a debit card that reimburses foreign ATM fees (Charles Schwab, Wise, or similar).
ATMs to Avoid in Panama
Stick to major bank ATMs listed above. Independent and casino machines charge higher flat fees and may have less security.
Standalone ATMs in Tourist Areas
Independent machines in shops, convenience stores, and Casco Viejo tourist zones often charge higher flat fees ($5+). They may also have less physical security and higher skimming risk. Use a Banco General or Banistmo ATM instead.
AvoidCasino ATMs
ATMs inside casinos frequently charge premium fees and may process withdrawals as cash advances on credit cards, triggering immediate interest charges from your card issuer. Avoid these entirely.
AvoidPaying by Card in Panama
Card Networks
Visa and Mastercard are widely accepted throughout Panama City at hotels, restaurants, supermarkets (Super 99, Riba Smith), gas stations, and chain stores. Acceptance is good in Bocas del Toro town, Boquete, and David as well. American Express is accepted at larger hotels, upscale restaurants, and international chains, but many mid-range and smaller businesses decline it. Discover has limited acceptance and should not be your primary card.
Contactless & Mobile Payments
Tap-to-pay is expanding in Panama City, especially at newer terminals in malls like Multiplaza Pacific and Albrook Mall, chain restaurants, and modern supermarkets. It is not yet universal. Apple Pay and Google Pay work at terminals that support contactless, but don't count on it outside the capital. Chip-and-PIN is the standard for card transactions throughout Panama. Make sure your card has a working chip.
Where Cards May Not Work
Taxis: most Panama City taxis are cash-only. Uber is the card-friendly alternative and often cheaper than negotiating a taxi fare. Local buses: the Metro requires a rechargeable Metro card (buy and load at any station, $0.35 per ride). Regular buses ("diablos rojos") cost $0.25 cash only. Street food and markets: cash only at food stalls along Avenida Central, the fish market (Mercado de Mariscos), and produce markets. San Blas Islands: no card payments at all. Bocas del Toro outer islands: cash-only.
Tipping in Panama
Tipping Guide
Restaurants: 10% is standard. Some restaurants in Casco Viejo and the banking district add a 10% service charge (propina) automatically, so check your bill before tipping extra. At casual restaurants and fondas (local eateries), rounding up or leaving $1–2 is sufficient. Hotel porters: $1 per bag is customary. Housekeeping: $1–2 per night is appreciated at mid-range and upscale hotels. Tour guides: $5–10 per person for full-day tours. Boat captains and island guides in San Blas or Bocas del Toro appreciate tips as well. Taxis: tipping is not mandatory. Rounding up by $1–2 is a nice gesture but not expected. Bars and cafés: leaving small change is common but not required.
Panama City, San Blas & Beyond: Practical Money Tips
Things to Know
For city-specific tips, see our Panama City money guide covering Casco Viejo ATMs, Metro payments, and Canal tour costs.
Tocumen International Airport (PTY) has Banco General and Banistmo ATMs in arrivals. Skip the exchange counters. Since Panama uses USD, there is nothing to exchange if you are arriving from the US. International visitors should withdraw dollars here.
Panama City taxis do not use meters. Negotiate the fare before getting in. Typical rides within the city cost $3–8. From the airport to Casco Viejo costs $25–35. Uber works well in Panama City and is often cheaper than taxis, with payment handled through the app.
San Blas Islands (Guna Yala) require serious cash planning. There are no ATMs, no card payments, and no banks on the islands. Budget $20–30 per night for basic island stays, plus food and boat transfers. Bring all cash from Panama City. Small bills are essential since island vendors rarely have change for large notes.
Bocas del Toro town has Banco Nacional and BAC ATMs. Some restaurants and hotels in town accept cards, but outer islands (Isla Bastimentos, Zapatilla) are cash-only. Withdraw before heading to the islands.
Boquete and the highlands are more card-friendly than you might expect. Hotels, adventure tour operators (coffee tours, Volcán Barú hikes), and larger restaurants accept cards. Smaller shops and local restaurants prefer cash.
Money Safety in Panama
Staying Safe
Tourist areas are generally safe. The banking district, Casco Viejo, the Causeway (Calzada de Amador), and Cinta Costera are well-patrolled and comfortable for visitors. Be cautious in Calidonia and El Chorrillo, which have higher crime rates. Avoid walking through these neighbourhoods, especially at night.
Use ATMs during daylight hours and choose machines inside Banco General or Banistmo branches, or inside shopping centres. Avoid street-facing standalone machines after dark.
Don't carry large amounts of cash. Keep daily spending money ($50–100) separate from your reserve. Use your hotel safe for passports, extra cash, and backup cards. Only carry what you need for the day, especially when exploring markets and street food areas.
Bring a backup card on a different network (one Visa, one Mastercard). Even though Panama uses USD and fraud alerts are less common than in exotic-currency countries, having a backup protects you if a card is lost or compromised.
Frequently Asked Questions
What currency does Panama use?
Panama uses US dollar bills for all paper currency. There are no Balboa banknotes. Panama mints its own coins (centesimos and Balboas) in the same size and weight as US coins, and they circulate interchangeably. You'll receive a mix of US and Panamanian coins in change. If you're coming from the US, your cash works here without any exchange.
Do I need cash in Panama?
Yes, outside of Panama City's modern areas. Taxis (most don't accept cards), local buses, street food vendors, markets, and neighbourhood shops are cash-only. The San Blas Islands have no ATMs and no card payments at all. Bocas del Toro's outer islands are cash-only. Keep $50–100 per day in small bills ($1, $5, $10, $20) since many vendors can't break $50 or $100 notes.
Are there ATMs on the San Blas Islands?
No. The San Blas (Guna Yala) Islands have no ATMs, no card payment infrastructure, and no banks. Bring all the USD cash you need before traveling there. Budget $20–30 per night for basic island stays, plus food and boat transfers. Withdraw in Panama City before departure.
Is tipping expected in Panama?
Yes, at restaurants. 10% is standard, and some restaurants add a 10% service charge automatically (check your bill first). Hotel porters receive $1 per bag. Tour guides and boat captains in San Blas or Bocas del Toro appreciate $5–10 per person for full-day tours. Taxi drivers don't expect tips, though rounding up by $1–2 is a nice gesture.
Does DCC affect me in Panama since they use USD?
No. Since Panama uses US dollars, Dynamic Currency Conversion is not an issue. However, some ATMs charge a flat withdrawal fee ($3–5 per transaction), and your home bank may add its own international ATM fee. Use a debit card that reimburses foreign ATM fees (Schwab, Wise) to minimize costs.
How does the Panama Metro work?
Panama City's metro accepts rechargeable Metro cards only, not cash or contactless bank cards. Buy and load a card at any metro station for $0.35 per ride. Regular buses ("diablos rojos") cost $0.25 and accept cash only. Uber works well in Panama City and charges through the app, so no cash needed for rides.
Skip the Foreign Transaction Fees
The Wise card lets you hold and spend USD with no foreign transaction fees. Perfect for Panama where everything is priced in dollars.
Get the Wise Card →Quick Comparison
| Method | Cost | Convenience | Best For |
|---|---|---|---|
| Bringing USD cash from home | Free (no exchange needed) | ★★★★★ | Simplest option for US travelers |
| No-FX-fee debit at bank ATM | Best (no conversion needed) | ★★★★★ | Getting cash from bank ATMs |
| No-FX-fee credit card | Best (no fees on purchases) | ★★★★★ | Daily purchases in Panama City |
| Standalone / casino ATMs | Medium-High (higher flat fees) | ★★★☆☆ | Avoid when possible |
Panama Quick Facts
| Currency | US Dollar (USD) for bills. Balboa coins at 1:1 with USD coins |
| Cash vs. Card | Cards widely accepted in Panama City. Cash needed outside the capital |
| Best ATMs | Banco General, Banistmo, BAC Credomatic, Banco Nacional |
| Contactless | Expanding in Panama City malls and chains. Not yet universal |
| Tipping | 10% at restaurants (sometimes included). $1/bag for porters |
| DCC Risk | None (Panama uses USD). Watch for flat ATM fees |
| Best Strategy | Bring USD cash from home plus a no-fee card for city purchases |
Panama City Guides
Neighborhood-level money guides for Panama's top destinations. Where to find ATMs, which areas need cash, how to pay for transport, and more.