Money

Currency

The unit of currency in Panama is the U.S. dollar, but the Panamanian balboa, which is pegged to the dollar at a 1:1 ratio, also circulates in denominations of 5¢, 10¢, 25¢, and 50¢ coins. (U.S. coins are in circulation as well.) Balboa coins are sized similarly to their U.S. counterparts, and travelers will have no trouble identifying their value.

Exchanging Money -- Travelers with pounds or euros may exchange money at Banco Nacional, which has branches in the airport and across the nation. To save time, you may want to convert your money into dollars before arriving at Panama.

ATMs

The easiest and best way to get cash away from home is from an ATM (automated teller machine), available throughout Panama in banks and supermarkets, and identifiable by a red SISTEMA CLAVE sign with a white key. ATMs, called cajeros automáticos, can be found in larger towns only, so if you're visiting out-of-the-way destinations such as an offshore island, plan to bring extra cash. To find ATM locations in Panama, check out www.sclave.com/english.html.

The Cirrus (tel. 800/424-7787; www.mastercard.com) and PLUS (tel. 800/843-7587; www.visa.com) networks span the globe; look at the back of your bank card to see which network you're on, then call or check online for ATM locations at your destination. Be sure you know your personal identification number (PIN) and daily withdrawal limit before you depart. Some ATMs in Panama limit withdrawals to $200 per day, others to $500. Note: Remember that many banks impose a fee every time you use a card at another bank's ATM, and that fee can be higher for international transactions (up to $5 or more) than for domestic ones (where they're rarely more than $2). In addition, the bank from which you withdraw cash may charge its own fee. For international withdrawal fees, ask your bank.

Credit Cards

Credit cards are another safe way to carry money. They also provide a convenient record of all your expenses, and they generally offer relatively good exchange rates. You can withdraw cash advances from your credit cards at banks or ATMs, provided you know your PIN. Keep in mind that you'll pay interest from the moment of your withdrawal, even if you pay your monthly bills on time. Also, note that many banks now assess a 1% to 3% "transaction fee" on all charges you incur abroad (whether you're using the local currency or your native currency). Businesses that accept credit cards always accept Visa and Mastercard, and to a lesser extent American Express. Diners Club is not widely accepted.

Traveler's Checks

You can buy traveler's checks at most banks. They are offered in denominations of $20, $50, $100, $500, and sometimes $1,000. Generally, you'll pay a service charge ranging from 1% to 4%.

The most popular traveler's checks are offered by American Express (tel. 800/807-6233, or 800/221-7282 for cardholders -- this number accepts collect calls, offers service in several foreign languages, and exempts Amex gold and platinum cardholders from the 1% fee); Visa (tel. 800/732-1322) -- AAA members can obtain Visa checks for a $9.95 fee (for checks up to $1,500) at most AAA offices or by calling tel. 866/339-3378; and MasterCard (tel. 800/223-9920).

Traveler's checks are readily accepted at major hotels, and less so at budget hotels and restaurants. In fact, beyond major hotels and banks, businesses in Panama seem reluctant to accept traveler's checks. Use an ATM for cash if you can, and bring traveler's checks as a backup in the event of a lost or stolen card.