How to Exchange or Transfer Money In & Out of Panama

When considering emigration to Panama the question of financial logistics quickly arises, including how to exchange or transfer money in and out of the country. Here are some options:

Exchanging Money in Panama

Currency Exchange Services

• US Dollar and Balboa: Panama uses the US dollar as its official currency, alongside the Balboa, which is pegged 1:1 to the dollar. Hence, US dollars do not need to be exchanged.
• Other Currencies: If dealing with other currencies, exchange services are available at banks, airports, and specialized exchange offices. Airport exchange rates tend to be higher.

ATMs

• Access: ATMs are plentiful in urban centers and shopping areas, disbursing US dollars directly.
• Fees: Most ATM providers like banks charge a fixed fee per withdrawal, usually around $1-2. Be mindful of potential fees from your bank or card provider, too.

Transferring Money Internationally

Online Money Transfer Services

• Providers: Popular services include Wise, Western Union, MoneyGram, and PayPal. These platforms offer faster and often cheaper alternatives to traditional bank transfers.
• Options: Transfers can be made directly to a bank account or for cash pickup.

Cryptocurrency Transfers

• Efficiency: Cryptocurrencies such as Bitcoin offer an alternative, cost-effective way to transfer money internationally.
• Regulations: Be aware of the risks and regulations. Panamanian banks generally do not accept transfers from crypto platforms, with the notable exception of Towerbank.

There are new providers like Bitpoint that allow using a Debit MasterCard that is connected to your cryptocurrencies giving you access to your funds.

Crypto-Friendly Bank in Panama

Towerbank

• Bitcoin Friendly: Towerbank, with over 40 years of banking experience, stands out as the only Panamanian bank that allows crypto transactions.
• Compatibility: It supports transfers from major crypto exchanges like Binance and Coinbase.

Important Factors and Tips

Know the Fees

• Evaluate the fees associated with currency exchange, international transfers, and crypto transactions. Fees can significantly impact the final amount received.

Understand Exchange Rates

• Rates can vary widely; compare options to maximize the value of your transfer.

Regulatory Compliance

• Panama’s strict anti-money laundering laws mean large transactions may require additional documentation.

Plan for Delays

• International transfers can take from a few hours to several business days. Account for this in time-sensitive situations.

Conclusion

When moving to Panama, a clear understanding of the financial mechanisms for transferring and exchanging money is essential. Whether using traditional banks, online transfer services, or cryptocurrencies, each method comes with unique fees, regulations, and delays. Plan accordingly to manage your finances efficiently.

References

1. Panama Relocation Tours – Wiring Money In and Out of Panama Banks
2. Legal Work Panama – How to Exchange Money in Panama
3. GlobalBanks – Best Way to Transfer Money to Panama
4. Wikipedia – National Bank of Panama
5. Wikipedia – Grupo Banistmo
6. Wikipedia – BAC Credomatic
7. Citigroup – About Us
8. Popular Bank Panama – About Us
9. OECD – Multilateral Competent Authority Agreement
10. Cointelegraph – Bitcoin-Friendly Top 30 Panama Bank
11. Bitpoint LatAm – Cryptocurrencies Debit Card and App