What kind of money do they used in panama?

Panama uses the Panamanian balboa (PAB) as its official currency. The balboa is pegged to the United States dollar at a rate of 1 PAB = 1 USD, meaning that their values are equal. However, the Panamanian balboa is not widely used in circulation; instead, the US dollar is the primary currency used for everyday transactions in the country.

As a result, the balboa is mostly used for accounting and official purposes. It is also worth noting that the Panamanian balboa is divided into 100 centésimos, which are further divided into smaller denominations of coins.

Panama's economy is highly dollarized, which means it heavily relies on the use of the US dollar. The country's banking system is also largely integrated with the US banking system, making it easy for businesses and individuals to conduct transactions in both currencies.

Although the balboa does have some limited circulation in Panama, it is the US dollar that is more commonly accepted as legal tender and is widely used for purchasing goods and services, paying bills, and conducting business.