Panama North, Central America Coins: World Coins & Paper Money
From the time of Panama's discovery by Rodrigo de Bastidas in 1501, all the way until 1904, the coins of many countries flowed freely in Panama. During Panama’s colonial period, it used Spanish money. Beginning in the 17th century, mill-edged Spanish coins, minted in Spain, supplemented the crude coins, minted in the Americas by the Spanish Colonial Mints. These crude, hand made coins were called "cruz" because they had a cross stamped on each coin. They were also called "pieces of eight" because they came in the denomination of 8 Reales. They were also called, simply enough, "8 Reales."
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Eventually, the Colonies produced machined coins like the ones produced in Spain. These Spanish coins circulated until the early 19th century. Around 1821, Colombian currency was introduced and circulated until Panama achieved its independence from Colombia. It then started minting its own coins in 1904. US currency has a long history of circulating in Panama, dating back to 1849, when the large numbers of 49er's, on their way to the gold fields in California brought dollars. This too was considered legal tender. The French, when they started building the Panama Canal in 1880, started circulating Francs.
Panama issued their first coins in 1904, after Panama separated from Colombia on November 3, 1903. On June 28, 1904, a law was passed authorizing a decimal coin system and naming the monetary unit in honor of Vasco Nuńez de Balboa. Three million Balboas were minted. To this day Panama mints its own coins, but the only paper money circulating in Panama is US dollars.
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