Panamanian Balboa - Banknotes

Banknotes

In 1941, President Dr. Arnulfo Arias pushed the government to enact Article 156 to the constitution, authorizing official and private banks to issue paper money. As a result, on 30 September 1941, El Banco Central de Emision de la Republica de Panama was established.

The bank was authorized to issue up to 6,000,000 balboas worth of paper notes, but only 2,700,000 balboas were issued on 2 October 1941. A week later, Dr. Ricardo Adolfo de la Guardia replaced Arias as president in a coup supported by the United States. The new government immediately closed the bank, withdrew the issued notes, and burned all unissued stocks of same. Very few of these so-called “Arias Seven Day” notes escaped incineration.