PANAMA BANKS

Many people are leery about traveling to Panama because the worry about problems with Panama banks. Panama isn’t like many of the other countries across the world with the banks that are not U.S. drawn. The majority of them are because Panama relies heavily on the U.S. government’s economy.

The Superintendent of Banks is a government agency that oversees all of the Panama banks. The head of this agency is appointed by the President of Panama. Loans, liens, and all mortgages are regulated by this agency.

The American dollar is used widely throughout Panama and is exchangeable at the same rate as Panamas. Panama banks use American currency but call the currency balboa. The currency in Panama is very colorful and is worth exactly the same amount of American money. $1 is $1 in Panama, whether is be American or Panamanian.

Panama cannot and does not print their own money. The Panamanian government also has no way to print more money or devalue the currency also. They have no control over the actual currency. Because of their dependence on the American currency, this means that the United States almost controls their monetary policy. However, the rise of inflation does not occur the same in Panama as it does in the United States.

There are Panama banks all over Panama. There are also hundreds of ATMs for you convenience too. You don’t have to worry about needing a bank because you are sure to find one on any of your travels throughout Panama.

The services provided by the Panama banks include general banking needs, money transfers, phone banking, ATMs, loans, and more. Some of the private banks in Panama are not U.S. drawn banks but the majority of them are because Panama is so dependent on the U.S. funds. It is advised not to trust the banks that are not U.S. drawn funds because they are not FDIC insured.

Panama banks are set up ideally to some country because there is not a primary bank in Panama, there are many. You don’t have to worry about any money issues when you get to the country because they rely heavily on American currency.