The Panamanian balboa is Panama's official currency, divided into 100 centesimos. US dollars are also in circulation, with denominations of ¼, ½, and 1 balboa.
Introduced in 1904, the balboa replaced the Colombian peso after Panama's independence and was pegged to the US dollar, which is also legal tender in Panama.
Panama does not have an official central bank. The Central Bank of Panama, one of two state-owned banks, is responsible for the country's finances and operates under the Ministry of Finance.