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Modern coins of Panama

Started by NewHikaru089, February 14, 2024, 06:18:53 AM

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<k>

#60
So Panama is a dollarised country. It uses US banknotes and coins.

However, it also uses its own coins, which co-circulate alongside US coins.

Their own centavos coins are the same size as their equivalents in US cents.


Ecuador has a similar situation.

However, Timor Leste is also dollarised but uses its own coins.

Moreover, their coins are of a different size from their US equivalents.

That is because US coins are NOT used in Timor Leste .


See:

Countries without their own currency

There are only four basic currency systems in the world
Visit the website of The Royal Mint Museum.

See: The Royal Mint Museum.

Pabitra

In 2011, Royal Canadian Mint also minted pattern for 2 Balboa coin for Panama. However, it was not approved for regular mintage and issue.

In 2017, Panama revised its coat of Arms, by increasing the number of stars and new set of circulation coins were issued.

Figleaf

#62
Quote from: <k> on February 15, 2024, 04:22:09 PMSo Panama is a dollarised country. It uses US banknotes and coins. However, it also uses its own coins, which co-circulate alongside US coins

However, Timor Leste is also dollarised but uses its own coins. Moreover, their coins are of a different size from their US equivalents. That is because US coins are NOT used in Timor Leste.

While Einstein did not say ""Everything should be made as simple as possible, but not simpler", he did say something much more complicated that means the same. As your conclusion shows, you made it too simple. The term Dollarisation as you use it collects altogether different systems and centers on USD, so it obscures, rather than simplifies.

I'll try simplification, but in a different way.

Today, all money is based on trust (fiduciary money). Maintaining that trust is the task of a central bank. Nations have several options for using a central bank. Here, they are arranged from fully domestic to fully cross-border.

  • Have your own and let it manage the trust in your currency. Example: UK
  • Have your own but use a common central bank (currency union). Example: France
  • Have your own and let it maintain a link with a basket of currencies within a band. Example: China.
  • Have your own and let it just maintain a fixed link with another currency. Example: Timor Leste
  • Don't have your own and use another currency. Example: Panama, Monaco.

Currency means unit of account, not just coins and banknotes. The choice of how to manage trust can vary in time. Example: Argentina used Spanish money in colonial times, a fixed dollar link, the Andean clearing mechanism and its own currency after independence. There are several sub-types of each of the above arrangements. Their differences are largely legal, not technical.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

<k>

Quote from: Figleaf on February 16, 2024, 09:41:51 AMAs your conclusion shows, you made it too simple. The term Dollarisation as you use it collects altogether different systems and centers on USD, so it obscures, rather than simplifies.

"Dollarisation" is an accepted informal term for currency substitution, whether a country uses the dollar, the euro, or some other cuurency.

Quote
  • Have your own and let it just maintain a fixed link with another currency. Example: Timor Leste
  • Don't have your own and use another currency. Example: Panama, Monaco.

Google "Timor Leste, currency". Result: Currency: United States Dollar.

Google "Panama, currency". Result: Currency: Balboa.

However:

The Panamanian balboa (PAB) is the national currency of the Republic of Panama, which circulates alongside the U.S. dollar (USD), to which the PAB is pegged at par (1:1). Balboas are issued only in coin form and are subdivided into 100 centésimos.

But the reality is that you cannot run a currency with coins alone. Neither Timor Leste nor Panama issue banknotes. They do not create money. They both use the USD. Their coins are backed by the USD. But Timor Leste has chosen not to use US coins. I see no essential difference between Panama and Timor Leste.

The other option is to use a currency board, as for instance the Gibraltar and the Falkland Islands do. Their currencies are kept at par with the pound sterling and backed by it. They do not create their own money, even though they do issue their own banknotes.
Visit the website of The Royal Mint Museum.

See: The Royal Mint Museum.