How does the value of a Panamánian balboa compare to that of a U.S. dollar, and why is this so? Write your answer in English

Answer 1

The value of the Panamanian balboa is equivalent to the value of the U.S. dollar. In fact, the balboa is legally tied to the U.S. dollar in a fixed exchange rate of 1:1. This means that 1 Panamanian balboa is always equal to 1 U.S. dollar. This parity between the two currencies exists because Panama does not have its own paper currency. Instead, it uses U.S. dollars as its official currency. As a result, the value of the Panamanian balboa and the U.S. dollar remains the same.