The way things have been going in Panama since the Martinelli blunder December 30th & 31st with his world wide income tax reforms, I wouldn't doubt that if the US dollar got into trouble, that he would switch to the Iraqui Dinar or the Vietnamese Dong! There are enough of those floating around Panama these days. Of course, after it would get repealed, then perhaps it would be interesting to see if the Panama economy is considered strong enough to try out the Balboa as Panama's legal currency. It would be the only country in the world whose currency and it's beer, have the same name!

........................There was some stupid talk awhile ago about introducing the Euro into Panama as an acceptable currency..........Wouldn't be acceptable to me..........Glad that disappeared. Now if we want to talk about the Norwegian Krone (2014 is it's year) or the Singapore dollar, then I would sit up and take notice. There is lots of gloom and doom about the US dollar, and possible currency revaluations (don't hold your breath), but until the US goes bankrupt, they will just keep on printing money, and it still works in Panama, Ecuador, and many places around the world. Whatever happens should be gradual and perhaps not even in our lifetime. I'm not getting rid of my greenbacks yet............

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I would be good with the Singapore dollar. I hope you are right about the "gradual" part. I'm a bit more pessimistic. I see it coming pretty soon....next 10 years. The course the US is on now is simply unsustainable. Its "when", not "if". Anyway, we are looking forward to our first visit to Panama in February. Like most folks, we are clueless as to where to start looking. I guess Boquete and Volcan sound as good as any.

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According to my crystal ball, when the dollar collapses, it will take the rest of the world with it but the dollar will take the biggest hit.

Or it won't...

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I don't see the US dollar collapsing but it will continue to lose value as it has done during my entire lifetime. I remember when I was still in high school we bought a 49 Plymouth for $75 and put 22 cents per gallon gasoline in it. After a number of years it threw a rod so we junked it. By that time I was working so in 1962 I bought a 1959 Ford convertible for $600. It was black with red seats. A year later we drove it all the way to Guadalajara, Mexico where it was really an attention-getter. Gas in Mexico at that time was 8 cents a liter. Things stayed rather reasonable until the late 1970's so by 1980 gas was one dollar per gallon and the price of new cars had tripled. Food used to be very cheap in the US. While I was still in high school I worked part time bagging groceries in the A&P. I remember buying large Hershey Chocolate Bars ( at first 1 lb and then later 12 ounces) in the A&P 3 for one dollar. Inflation continues. Inflation is a hidden tax. The government is always repaying it's debt with cheaper dollars so they never have to pay back as much as they borrowed.

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Yeah but the average salary back then was $50-90 take home per week?

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Choosing an expat health insurance provider is an important decision. Get a quote from our trusted expat health insurance partner, CIGNA. With Cigna Global Health Options, you can create an international health insurance plan that's perfectly tailored for the needs of you and your family.

Back in the 70's, I bought a nice house in a great area for $27,000, and was making $9,600 a year, considered middle class income at the time. Things have definitely changed.

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A lot of people that are interested in coming to Panama are clueless as to where to begin their journey.

Have you decided what kind of climate you want to live in?

Do you want to be around a lot of expats and activities?

Do you want to be close to shopping or more remote?

What do you want to spend on rent?

Just knowing the answer to a few of these questions will help narrow down some of the options available in Panama.

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When I first came to Panama 10 years ago, I was mostly interested in what Panama had to offer for amenities. I knew it had the climate I liked in the mountains, and the ocean and beaches were also here for occasional beach trips. I could live near many expats & great shopping, or live in a Panamanian community, or live in the wilderness and the cost of housing was attached to those three options. Panama is all about options. When I take people on tours here, I expose them to all of these options. We get to know each other a little better by e-mail, and it helps me put together a little visit that works. E-mail me and I can send some pictures and information panamajames@gmail.com You might not want a relocation tour, you just might want a holiday and to see the hot spots. Many people come here, wander around a bit, and miss all the sights to see.........

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I have a place I know of in Boquete, that is available until February 12th when some folks move in to the end of the month. We can plan a tour of Volcan while you are here. E-mail me if you need some help with that.........

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You should take James up on his offer. He isn't selling anything-he's a friendly guy who likes showing people around. Just fill up his gas tank (and his stomach) and get a real tour of the area.

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The official currency of Panama is the Balboa, not the Dollar. It is currently pegged at an exchange rate of 1:1.

Panama uses the dollar as its currency for bills, and pays the US Mint for the paper dollars that are shipped to Panama, and worn out, etc.

Panama does mint its own coins, which resemble US coins, but are not. Panama also mints a One Balboa coin, but it's not a One Dollar coin.

If the US dollar collapsed, the whole world would be in trouble, but Panama has the ability to switch its currency if it ever desires to do so.

I'm curious if Panama has already had Balboas printed up in storage somewhere for such a (remote) possibility. My guess is yes, but they would be crazy to admit it. There are still quite a few advantages to being a dollar economy in terms of international transactions.

Most tourists and expats consider it a considerable convenience.

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Right. I knew about the Balboa. I just wonder if looking at Panama (or any other country) as a safe haven for my money makes sense. In other words, if I am going to live in Panama, should I buy Balboas? If the dollar then became useless and they switched to the Balboa, do I have something with buying power or just a Balboa that I can buy one bean with? Does it even matter? It's interesting to think about.

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I'd agree wth jonoyaker's comment re Jim. He is a friendly guy and will help out where he can. We stayed in his casita for 2 months when we first arrived and he and leisa know the area well.

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Any currency not redeemable from the government for a fixed asset (e.g., silver or gold) is a fiat currency, is subject to debasement, manipulation, bad monetary policy, and complete collapse. That's an inherent risk and it can't be completely avoided.

There are some new types of electronic money (the Bitcoin is the most popular at the moment) which could be free of those risks, but they are still cumbersome and governments don't like them at all as it is harder to track or manipulate. We are years away, at least, before you could buy a beer at a local watering hole in Panama (or anywhere else) with a Bitcoin.

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The official currency of Panama has been the dollar since a year or so before the canal was started. Prior to that, panama used the Colombian peso. Of course panama needs something to identify with so they call their coin the balboa. None of which is minted in panama. Not even the new balboa dollar. The USA and a few foreign contracts mint the coins and I believe Canada picked up the contract to mint that new dalboa dollar most call the 'martinelli'.

Just sayin ..

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Many always call for folks buy and horde gold, silver, platnium, etc just in case there's a monitory collapse. Doing so IMO will only prove we cannot learn by our past mistakes. Anyone remember american history and the gold rushes? Many retailers in those areas stopped accepting paper and coin money and insisted on gold or silver. Remember stories of shovels and other supplies costs exceeding $500 bucks per piece?

Should our economy collapse, gouging laws will go out the door in an instant! How would one spend their horded precious metal? Walk into Walmart with a cheese grater and their gold bar, scrape a few flakes off to pay for groceries? Moreover, many people within ours and many other societies have grown fond of living the have, and have not way of life. Meaning, if the have nots see that another has a stash of gold, the original owner will soon be parted with the shiny stuff. In other words, the next apocolyps won't be the only reason to have a civil type war.

Like said above ... IMO only.

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I have to agree with tharin4prez. A stash of gold and/or silver doesn't serve much purpose. It's not an investment, because it doesn't generate any income. And you won't be able to really spend it very well in a financial meltdown. At best, it's some sort of insurance in that it could be transferred into some other currency at some unknown exchange rate.

If the Dollar collapses, I don't think there is a realistic Plan B that keeps life normal for anyone other than those who manage now at a subsistence level. I'm pretty sure I wouldn't do well, no matter how many Kruggerands I had to begin with.

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There are lineups in Vancouver, Canada.....people buying Bitcoins........another ATM for bitcoins to open in Hong Kong. China is not happy with them............. ............................ http://www.scmp.com/news/hong-kong/article/1397788/hong-kong-get-worlds-second-bitcoin-atm-say-makers

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Here is the China story on Bitcoins saying you can buy coffee with them, pay for online services, and use ATM machines........Here is a China story............... ................

http://rt.com/business/bitcoin-plunge-china-ban-431/

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Interesting development, panamajames.
The bitcoin is a real threat to currency manipulators, which are banks to some degree, and national governments in particular. The US Federal Reserve is the biggest currency manipulator of them all, and readily admits it.
The European Central Bank and the Chinese do so as well. The bitcoin challenges their ability to do so, and I think it should be obvious that powerful governments (and the banks that also would be cut out of their middleman services) will seek to outlaw or destroy it. They certainly won't surrender power without a fight. It will be made illegal as soon as it's perceived to be a real threat. China apparently has just done so.

In the long run, it probably won't work. We've tried to outlaw booze, and even some plants, but that didn't work despite countless of billions of dollars spent and lives lost.

But I'd be afraid to embrace the bitcoin anytime soon. The concept is great, but you just showed what the risk is. If you bought bitcoins last week, you've lost half of your money today. Troubling, to be sure....

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The Bitcoin has always been an interesting idea. When I retired from the USAF in late 08, I pondered many things and investments. Out of curiosity, I went to this one investment seminar and the people were pushing "Succeed INC" as a stocks tracker. Good thing their speaker sucked at selling ... I didn't invest and it wound up tanking. The speaker also introduced this slide show on the bitcoin. In early 2009, one could buy approx. 1300 bitcoins for a buck! That comes out to somewhere REALLY CHEAP! In Nov 13 their value reached an amazing $1200+ each. No body then had even heard of a bitcoin, let alone investing in it ... and the speaker to me seemed like he needed to be wearing a tin foil hat.

Silly me! Had I invested just $100 bucks in the things that day, I could only imagine .... ??

Their value is only being driven up because of its current trading frenzy. One cannot actually use them as they please. They're not yet used on the open retail market. Once the market opens, their value will fall dramatically! Hold onto your money folks ...

BUT ... There's always a but right? What if the tin foil hat people are right and earths future will be hit w/ a solar EMP? BAM! Bitcoins are once again worthless!

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You have to put your thinking cap on, and look to the future. Get your crystal ball out and come up with all the reasons that Bitcoins could work, and could fail. The price is too high now, even at half the price of last week. When I first started into Gold, it was $300 an ounce, and like Tharin4pres says, bitcoins were very cheap in 2009. You can buy Iraqui Dinars and Vietnam Dongs very cheap now as well. But what currencies are going to be the break out ones in the future. Many of us moved on Swiss Francs until they were tied to the Euro and dropped out of sight. As for the Balboa, Panama seems to be in more economic trouble than ever before with some real problems with the Canal expansion and people having second thoughts about having their Corporations domiciled in Panama, and moving them to other jurisdictions. Panama was looking great a few months back. We will have to see where 2014 takes us...........

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Panama James mentions a possible global currency reset. The when /if can't be predicted yet most economists/money types (I use that term lightly) claim it will start in the first to second quarter of 2014 and the petrodollar will devalue possibly by 50% of where it is now.

Bitcoin is a scam (it’s not backed by anything except emotion). Gold and silver are insurance only against Fiat monies. You would have to wait until all settles down and then convert your gold or silver into whatever becomes the new currency.

The Balboa will more than likely survive, unknown whether it will follow the dollar as to the devaluation. I tend to think it will be good to have a local bank account just so you can get some Balboas when and if this happens. Opening a bank account means you have to own property in Panama. volcan357 posted a very interesting article about gardening not too long ago, this means you can grow your own food and barter with other folks to survive no matter what happens to the economies. Your safehaven for your dollars is your land.

As to finding this land panamarelocationtours brings up some great questions yet you seemed to have answered these questions when you said Boquete or Volcan. I chose Volcan and am in the process of setting everything up at present. Volcan357 lives in Volcan and he would be a good point of contact. Also if Jim takes you to Volcan on a tour, ask him to point out my location.

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every fiat currency in history (over 600 )has failed and every future fiat currency will fail by its nature being a ponsi scheme.
since other currencies are tied to the USD down they will go too. even so they are fiat too and will fail on their own. fiat currencies last 30 to 40 years.
http://hiddensecretsofmoney.com/?utm_source=GoldSilver&utm_medium=click&utm_content=tabclick&utm_campaign=Tabs

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Yes, you want to turn your US dollars into Panamanian Balboas............I do that all the time for US and Canadian folks who ask. There are a few hoops to jump through, but we do it every day......The banks can be tough to deal with here, but with patience and some knowledge, it can be done......Right now the Balboa is tied to the US dollar but if the US dollar implodes as expected, you rest assured that the Balboa will move out on it's own.

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An article worth reading
http://object.cato.org/sites/cato.org/files/serials/files/cato-journal/1999/1/cj18n3-12.pdf

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Wow, so much gloom and doom. I've sold mint condition silver old coins because I had too. Walk outside see the birds, watch the animals. Just keep the faith that's all we can do, to worry could put you in a hospital, it's out of our hands. Just be careful. Sheila

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Wait, did we read the same article? It seemed like a positive outlook to me. It would be nice if the article were written in more layman's terms so that everyone could interpret it similarly. One observation is that it is unclear when the article was written. It seems old based on the reference dates.

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I suspect she means the thread rather than the linked article. As for the original question, if it is a serious concern, buy arable land.

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Very unlikely, that shouldn't even be a factor in your consideration to move here.

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This post is from 2 1/2 years ago. I'm sure the OP has made their decision by now.

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The article is from 1999 however policies have not changed. It is a market driven banking system and not controlled by a central bank. Panama's economy is still in good shape and expanded during the last banking fiasco in the USA. While the fiat currency is the US Dollar the Balboa trades separately on the international currency exchange and its value is based on the issuing countries economy.

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To cbredemus:

I too agree, take him up on the offer! Great guy, knows what you're facing and can possible take away some stress at the front end, by giving a boots'-on-the-ground perspective.

Good Luck! Enjoy!

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Is that a fact? Does the Balboa really trade separately on the international xchange money market? News to me if so..........and very interesting.........so what would happen to our $$ in the local banks here? Would they automatically be credited as Balboas?

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Just go Google "does Panama have a central bank" or something like that. The Balboa gas been tied to the dollar since 1904 if I remember correctly. But they can always choose to uncouple it and stop using dollars entirely. Of course, the only have coins right now but that's a small matter.

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@ dumluk
Go here https://www.oanda.com/currency/converter/
My funds are held here in Balboas. Need to check with your bank.

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Sent you a private message.

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can u fish?

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I'm curious about this. Can anybody tell me if the US dollar in Panama is affected by the US economy since Panama uses the US dollar?

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Great topic. We are considering Panama and glad to hear that PajamaJames is there for us newbies! How do we contact you James. I am new to this site.

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The value of a currency is affected by the issuing countries economy(inflation, interest rates, trade, government deficits, etc.). Panama uses US currency (Bills primarily) to trade. The currency in Panama is the Balboa and things are bought and sold in Balboas. The Balboa trade separately on the the international currency exchange and has had little fluctuation with the US dollar. If the US economy were to go bust, the value of the Balboa would be established by Panama's economy not the US's although a bust in the US economy could well impact Panama's as well as the rest of the world.

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