Local Currency and Exchange Information

The local currency in Panama City, United States is the United States Dollar (USD). Panama uses the USD as its official currency, making it convenient for travelers coming from the U.S. since they do not need to exchange money.

While you can use cash in USD, it’s important to note that some businesses may also accept Panamanian Balboas (PAB), which is pegged to the USD at a 1:1 ratio. However, Balboas are primarily used in coin form, while banknotes are predominantly USD.

For the best exchange rates, it is advisable to avoid currency exchange kiosks at airports or tourist areas, as they often charge higher fees.

Payment Methods and Banking Options

In Panama City, most establishments accept major credit and debit cards, including Visa, MasterCard, and American Express. However, it is wise to carry cash for small purchases, tips, and at places that may not accept cards.

• ATMs: ATMs are widely available throughout Panama City, with many accepting international cards. Look for ATMs affiliated with your bank for reduced fees.
• Credit Cards: Using credit cards can offer rewards and fraud protection, but notify your bank of your travel plans to avoid any issues with your card being blocked.
• Cash Usage: While credit cards are accepted, having a small amount of cash on hand is essential, especially for local markets and transportation.

Tipping Customs and Payment Etiquette

Tipping in Panama City is appreciated but not mandatory. Here are some guidelines:

• Restaurants: A tip of 10-15% of the total bill is customary if service is not included.
• Taxis: Rounding up the fare or adding a dollar for longer trips is common.
• Hotel Staff: $1-2 per bag for porters and about $2-5 per night for housekeeping is appropriate.

When paying, it is polite to hand the payment directly to the server or cashier rather than leaving it on the table.

Cost Considerations and Budgeting Tips

Panama City offers a variety of price points, making it accessible for different budgets. Here are some tips:

• Dining: Budget restaurants may charge around $5-15 for a meal, while mid-range restaurants can range from $20-50.
• Accommodation: Hotel prices can vary widely. Expect to pay between $50-150 per night for decent hotels.
• Transportation: Public transportation is affordable, with bus fares averaging around $0.25. Taxis have a base fare of about $2, plus additional charges.

Plan a daily budget based on your activities and dining preferences to manage your expenses effectively.

Practical Financial Advice for Travelers

To ensure a smooth financial experience in Panama City, consider the following tips:

• Notify Your Bank: Inform your bank of your travel dates to avoid any interruptions in card use.
• Use Local ATMs Wisely: Withdraw larger amounts to minimize transaction fees, but avoid carrying large sums of cash for safety.
• Keep Small Bills Handy: When using cash, having small denominations is helpful for tips and small purchases.
• Check Credit Card Fees: Be aware of any foreign transaction fees your card may have, and look for cards that offer no foreign transaction charges.

By following these guidelines, you can enjoy your visit to Panama City while managing your finances effectively.