Money exchange

[BOB P.]

I have been told to bring Canadian money to Panama and exchange it into US dollars once their. It currently cost us 1.32 to buy 1 us dollar here in Canada. Is this true?

[COUNTRY EXPERT- JESSICA RAMESCH]

Hello ________,

If only love made the world go around. Unfortunately, for many of us money is the biggest consideration on our minds, and the same will be true in your life overseas. Some expats manage perfectly well in Panama with home-country credit and debit cards.

This is not a country where you’ll find exchange posts around every corner. You can withdraw dollars from ATMs in Panama City, ask whether your hotel offers exchange services, or plan on getting to a bank during local operating hours. Exchange rates fluctuate constantly, so check with a bank to find out the current rate and expect there to be fluctuation (usually minor amounts) between now and when you travel.

For most, opening a bank account in Panama is the best solution for long-term stays or full-time living.

If you are coming for a short visit or are in the process of getting your Panama account set up, you may need to operate via credit cards and withdrawals from home via check or debit card. As I’m sure you already know, Panama uses the U.S. dollar and all ATMS dispense U.S. dollars.

Though many of the banks you know from back home have branches in Panama—such as Scotiabank—don’t assume the systems are the same. They are not. A bank branch in Panama won’t have your account information or waive ATM fees just because you’re an account holder in another country.

In Panama City and other major destinations like David and Santiago, there are ATMs around nearly every corner. After all, Panama has one of the largest banking districts in the world, with some 90 different banks operating here. You’ll also find ATMs in most supermarkets and shopping malls. (Watch out when visiting the islands or remote areas, though. There’s no ATM on Contadora Island, for example.) Take into account fees you may be charged to make withdrawals while abroad; you could pay anywhere between $3 and $5—even more—each time you use the ATM. Just use a card with a recognized system like Plus or Cirrus (it will say right on your card) at any ATM in Panama (most ATMs in Panama use a variety of systems, including Plus and Cirrus, so you can plug your Canadian card into nearly any ATM here and withdraw U.S. dollars, usually at a good exchange rate as compared to whatever exchange posts are offering)

If you use your credit cards from back home in Panama, your bank may impose fees for use abroad. Many credit card issuers now shamelessly charge not only a fixed fee for every international purchase, but also up to 3% on the purchase amount.

If you’re moving to or spending a lot of time in Panama, tell your bank representative that you’re planning on spending time in Panama and discuss these fees. You may find that opening an account in a different bank in Canada, or wherever home may be, can save you money when you get to Panama. Some banks have special offers for things like foreign ATM fee reimbursement, or better bill paying options, while others may offer credit cards with no foreign currency fees. You’ll find it well worth your while to research these options exhaustively.

For large sums, expats (usually those living or doing business here) often use international wire transfers.

Safety and contingency plans

Before traveling to Panama or anywhere, have a contingency plan and expect the unexpected. For example, what will you do if you find yourself out of cash or lose your credit cards? Know your credit card pin for cash withdrawals (though these can be so expensive they should only be used as a last-ditch measure). Keep emergency numbers and any other pertinent account information listed in a secure location, so you can call to report card losses immediately. Online banking is a plus, as you can access your information securely online with your secret password. Talk to loved ones about being away and ask who will be available to help in a pinch. Panama has several Western Union and MoneyGram branches you can use to get funds here in an emergency.

Read more about money and moving to Panama here on your Panama Insider website, starting here: https://internationalliving.com/country_clubs/panama/moving-to-panama/

And don’t hesitate to post any additional questions or comments.

Best,

Jessica Ramesch
IL Panama Editor

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