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5. FX and capital controls: Panama

FX and capital controls in Panama: the dollar economy built on Ley 84 de 1904, where the balboa is fixed at par and the US dollar is legal tender, the constitutional bar on forced circulation paper money, the free repatriation guarantee of Ley 54 de 1998 for dividends, capital, interest and profits, foreign loans and the 1 percent FECI surcharge on local loans, and the B/.10,000 cash declaration at the border and the bank cash reports of Ley 23 de 2015, each tied to the official text. Where money moves to or from Argentina, the Argentine FX rules are covered in The Argentine Thread guide.

Investor view. A legally dollarized economy with no exchange controls and a statutory guarantee of free repatriation removes currency and transfer risk for investors, leaving taxes and AML diligence as the only frictions to plan for.

• Panama's dollar economy: the balboa at par, US dollar legal tender since 1904 and no exchange controlsPanama's monetary unit is the balboa, but since Ley 84 de 1904 the US dollar has been legal tender at par, one dollar for one balboa. The Constitution bars paper money of forced circulation, and Panam
• Repatriating profits and capital from Panama: no FX approval, the free transfer guarantee of Ley 54 de 1998 and the 10 percent dividend taxPanama imposes no exchange control on dividends, capital returns, interest or payments for imports and services: Ley 54 de 1998 guarantees foreign investors free repatriation of capital, dividends, in
• Foreign loans into Panama: no registration, the 1 percent FECI surcharge on local loans and the 12.5 percent interest withholdingPanama does not register foreign loans or control their repayment: principal and interest leave in dollars without approval. Local commercial and personal loans above B/.5,000 from banks and financial
• Cash in Panama: the B/.10,000 traveler declaration and the bank cash and quasi cash reportsThere is no limit on bringing dollars into or out of Panama, but any traveler carrying money, securities, negotiable documents or goods worth B/.10,000 or more must file the customs Declaración Jurada

Related: Panama country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide