Panama may well be a small country, a lot of Panamanians are living and working abroad and are regularly sending money to Panama. Whether you send money to support your family or for business related transactions, comparing your options can save you a lot of money in transfer fees or bad exchange rates.
There are two official currencies in Panama, the Panamanian balboa (PAB) and the US Dollars (USD). The two currencies are tied together with a 1:1 exchange rate and the US Dollar is in practice the currency commonly used in Panama. All money transfer providers will propose to transfer your money into US Dollars when sending to Panama.
If you’re sending money to Panama from the United States, you won’t have to worry about exchange rates as you will directly send US Dollars. It’s still important to compare your options to find the providers offering the cheapest fees, especially if you want the money to be receive at a cash pick-up locations. Services like WorldRemit, Transfast, MoneyGram or Western Union all have a good coverage of Panama.
When sending money from a different currency, take the exchange rate margin taken by the provider into account, especially if you’re transferring large amount of money into Panama. Foreign exchange companies like Currency Solutions, Currencies Direct, OFX, Global Reach Partners or Frontierpay are all good options to consider.