After gaining independence from Colombia in 1903, Panama immediately became fully dollarized with the US-dollar (USD) as national currency. Panama home to 2.7 million is more prosperous than many of its neighbouring countries within the Central American region. The Panama Canal has since returned back to Panamanian hands on December 31, 1999 after 85 years of U.S. control – the United States will remain Panama’s largest customer.
Economic Statistics
Total GDP as measured by PPP stands at $20.5 billion USD (2004) with corresponding GDP/Capita at $6,900 USD. Market GDP was estimated at $14 billion USD (2004). GDP growth rates have year 2004 at 6 percent, 2003 at 4.1 percent, 2001 at 1.5 percent. Inflation figures include year 2004 at 2 percent, 1997 inflation at 1.2 percent. The current account is in deficit at $470 million USD (2004). Foreign exchange reserves stood at $1 billion USD (2004). Services account for 80 percent of economic output. Unemployment came in at 12.6 percent (2004) while 35 percent live below the poverty line. Panama is a net oil importer.
CURRENCY: ISO Symbol ‘PAB’, ‘USD’, Panamanian Balboas, United States dollar. At time of review on January 16, 2006, the USD was valued at $561 USD to 1 ounce of gold ‘XAU’. The balboa trades at par to the USD in circulation since 1904. The USD is the only paper currency banknote within Panama while balboa only exist in coinage. The balboa coins are the same size, weight and denomination as U.S. coinage.
CURRENCY HISTORY: the US-dollar is the legally adopted circulating paper currency since 1904.
CURRENCY FORECAST: USD outlook is negative although the domestic Panamanian economy itself may perform well. Panama has a vibrant economy such as offshore banking & finance, coffee – agriculture, Panama Canal revenue ($600 million USD/year), construction and mining. The economy is expected to get a further boost from additional mining revenues as the $1 billion USD copper-gold project located near Coclecito in Cocle province northwest of the capital is forecasted to provide mineral exports of $600 to $800 million USD/year by 2010.
For further details on the US-dollar, please visit UNITED STATES within this BankINTRO.com currency index.
UPDATED: January 16, 2006
