Talk:Panamanian balboa

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This page is completely innacurate when it says this:

"The balboa has been tied to the U.S. dollar (which is legal tender in Panama) at an exchange rate of 1:1 since 1904, and balboas can be exchanged for U.S. dollars in Panama at any time at a 1:1 ratio."

The official currency of Panama is the US dollar, but is merely CALLED the "balboa" by some in Panama. Simply calling it a Balboa does not make it so. There simply is no Panamanian currency. Further, it is completely misleading to say that the government has "tied the value of the Balboa to the dollar" because that implies there is some currency in Panama besides the dollar whose value can be so tied.

Panama has been "dollarized" and uses only the US dollar. The term "Balboa" refers to a ficticious entity like a child's "invisible friend". There is no "exchange rate" amongst the same currency.

Argentina's peso is an example of a separate currency whose value was tied 1-to-1 with the US dollar. It has since been de-linked, but even when it was tied to the same value, an official exchange rate computation had to be calculated for, say, credit card purchases, for example. Also, the Argentine peso was a separate currency; you could hold the Argentine pesos in your hand. There are no Panamanian Balboas, anywhere, except in the hands and wallets of every American in the form of US dollars.

Panama has contracted with the US to mint coins equivalent to the US coins, but with Panamanian designs on each side. Thus Panamanian coins have the same color, size, weight, shape, ridges, etc..as US coins and function in US machines that accept coins, and US coins are accepted in Panama as well as the Panamanian coins. The only difference is that Panamanian coins are not accepted by Americans in the US (unless they are not paying close attention, otherwise they look the same but for the face design). --JohnCPope 20:37, 19 July 2006 (UTC)

I just reread and noticed this:

"balboas can be exchanged for U.S. dollars in Panama at any time at a 1:1 ratio"

Please show me ANYONE who can exchange dollars for Balboas. First, who would do it? Since Panama uses US dollars (and since no Balboas exist) THERE AREN'T ANY MONEY CHANGERS! Where would you go? The bank? They only have US dollars. If I wanted to exchange $5 for 5 Balboas, would the teller take my $5 USD-bill and hand it right back to me? The surest way to make a Panamanian roll on the floor laughing is to hold up dollars and ask where you can exchange them for Balboas (unless you are talking about Balboa brand beer, in which case you'll be directed to the local convenience store).

Essentially, if no Balboas exist, YOU CAN'T EXCHANGE DOLLARS FOR THEM! --JohnCPope 17:21, 20 July 2006 (UTC)

Calm down... What these coins, where some of them don't look commemorative and bear the word balboa? --Chochopk 17:36, 20 July 2006 (UTC)

Furthermore, look at the following page [1] from a generally very reliable source. The balboa most definitely exists, in much the same way as currencies like the Jersey pound, Guernsey pound, etc. The only difference is that Panama has always used the name Balboa on its coins and (briefly) banknotes.
Dove1950 19:24, 21 July 2006 (UTC)