Some have heard or read that at some point in Panama’s history Balboa banknotes actually happened to be in circulation. The entire fact was initiated with Dr. Arnulfo Arias Madrid as the president of the country giving speech on the radio across the country, who announced the creation of the Central Bank of Emission of Panama.
The following day, October 1st, the Balboa bills of a 1, 5, 10 and 20 value began circulation. The 2nd of October the President Arias visited the office of National Bank to oficially exchange dollars to balboa.
Seven days later President Arnulfo was overthrown by opposing party and according to the official version, abandoned Panama on a trip to Cuba without the proper authorization of the National Assembly. Such fact led to Balboa to be phased out from the circulation, which was technically made with the use of Law 29 of December 30, 1941, which assumed necessary period of 10 years for the change of the bills.
The Balboas were burned in 1942 in the College of Arts and Crafts. The approximate number of Balboas put into circulation at that time was about half a million, but only about 7,000 survived the elimination process.
