Emerging Markets Rates and Currencies Handbook

Panama (PAB - Panamanian Balboa) Citi in Panama For more than 110 years, Citi Panama has been involved in the country’s economic development, starting with the funding of the construction of the Panama Canal in 1904 through the former International Banking Corporation. Citi Panama has continuously funded other public works throughout the years, such as the highway network, hospitals and the recent construction of the country’s first metro system. Citi Panama has been recognized by international financial publications for its outstanding performance in International Trade, Foreign Exchange and Internet banking. Market Overview Panama has been a dollarized economy since its independence in 1903 and the national currency is the Panamanian Balboa (PAB). Ever since its inception, the Balboa has been pegged by law against the USD at 1:1 ratio and it can be traded for USD at any time by any entity. Although the PAB is the official currency, it is only used for small transactions and as a unit of account (only coins are minted), as the USD is the legally accepted circulating currency. Therefore, there is no local rates market denominated in PAB. Panama does not have a properly defined central bank. In Panama, there is no rates market. Convertibility The legally accepted circulating tender is USD. 235