Panamanians Reject Balboa

Started by Bimat, August 08, 2012, 04:31:13 PM

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Rejection to a Balboa Currency in Panama

The rejection to the currency of a balboa (dollar), known as Martinelli, continues both among Panamanians and foreigners passing through the country since its value is only circulating locally.

The Ministry of Economy and Finance has explained many times that although dollarization in Panama dates back to 1903 and the country lacks its own currency as a sender inhibits it, there are precedents for circulating coinage, such as coins from one to 50 cents.

But Panamanians are reluctant to treasure the Balboa like the banks because it is no backed by the dollar. In fact, the balboa is only a concept, as the current coin value as such is the dollar.

The government argues its decision to gradually replace the paper ticket low nomination with the savings that could, as it is shown that this is impaired in six months, which requires constantly acquiring the U.S. Federal Reserve.

The metal currency is durable and wedged in thecountry, which means lower cost. The protests are due to fewer and fewer tickets to one and more Martinellis, confirmed Alberto Diamond, superintendent of banks.

President of the Association of businesses, Roberto Troncoso, admitted that people prefer the paper dollar, and reject the metal also for its physical weight.

According to the government, the initial coining Balboa claimed an investment of nearly 10 million dollars and produced a seigniorage of 30 million who entered the coffers of the Treasury. It looks also to mint coins of two and five dollars.

Source: Inside Costa Rica
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.