Last updated:
Panama plays a key trade role in Central America due to its links to both South and North America, as well as the Pacific and Atlantic oceans. In 2009, Canada and Panama signed a bilateral free trade agreement which has led to increased trade between the countries. This, coupled with the fact that thousands of Canadian tourists flock to Panama each year, makes the country a bit of a hot spot for international money transfers. Check out our handy money transfer guide if you’re looking to send money to Panama in the near future, to find the most competitive exchange rates and lowest fees.
WorldRemit can help you get your money where it needs to go in minutes, with upfront exchange rates and low fees.
Use promo code FINDERCA on your first transfer and pay zero fees. T&Cs apply.
The “Rate” and “Amount Received” displayed are indicative rates that have been supplied by each brand or gathered by Finder.
Exchange rates are volatile and change often. As a result, the exchange rate listed on Finder may vary to the actual exchange rate quoted for the brand. Please confirm the actual exchange rate and mention “Finder” before you commit to a brand.
The process to send money to Panama doesn’t have to be painful, provided you know where to start. Two notable ways to send money overseas include your bank or an online money transfer company. Banks tend to overcharge on exchange rates and fees, typically adding an additional $20 to $100 on top of international transfers. If you’re looking for a more affordable option, you might like to consider the services of an online money transfer provider like TorFX or World First. These companies offer quick and affordable transactions to thousands of destinations around the globe, with low fees (typically between $0 and $20) and competitive exchange rates.
Rachel has been living and working in Toronto for a couple of years and she tries to send money home to her sister in Panama every month. Rachel has always used her bank to facilitate wire transfers, but is fed up with their sub-par exchange rates and a steep $35 fee per transfer. She decides to compare two online money transfer providers to see if she can find a better deal. The comparison below is based on exchange rates in the fall of 2018, so check current rates before making your choice.
| Money Transfer Service 1 | Money Transfer Service 2 | |
|---|---|---|
Exchange rates | CAD$1 = USD 0.765 | CAD$1 = USD 0.763 |
Transfer fees | $10 | $25 |
Amount received (for $1,000) | USD 7,650 | USD 7,630 |
Transfer speed | 2 – 5 days | 1 – 2 days |
Options available | Bank-to-bank transfer | Bank-to-bank tranfer or cash pick-up |
Rachel realizes that she can save USD 20 (approximately $26) in the exchange rate with the first money transfer option, with an additional $15 in fees. If Rachel sends money every month, this amounts to almost $492 over the course of one year.
How to compare money transfer companies when transferring money to Panama
Some Canadian banks will allow you to send money to Panama, however you will likely face sub-par exchange rates and high transfer fees. Other services that offer money transfers to Panama include:
MoneyGram, Western Union and WorldRemit are all companies that can send a cash transfer to Panama within minutes, making for a great emergency cash option. Just be aware that these companies will send money in USD, which will then need to be converted into PAB in Panama. Major credit cards can also sometimes offer emergency cash to travelers (which is typically extended as a loan) or you may also be able to purchase a travel insurance policy to cover loss and theft while on vacation.
The Government of Canada recommends that Canadian travellers take normal security precautions in Panama (as of 15 September 2018) but avoid all travel to Yaviza. Petty crime which includes pickpocketing, bag-snatching and robbery takes place frequently in rural and urban areas throughout the country. In Panama City, high-crime areas include bus stations and shopping areas on Avenida Central. If you do need to collect cash at an agent location, be sure to do so in a safe neighborhood before dark and in the company of a trusted friend. Avoid displaying signs of affluence or carrying large sums of cash and be cautious when withdrawing money from ATMs.
With 240,000+ locations in 130 countries, Ria is the third-largest provider of international money transfers in the world. It offers great exchange rates, minimal fees and fast, secure transactions when you need to send funds overseas. Read more…
Learn about how COVID-19 may affect the ways you transfer cash around the world. Read more…
Learn about the pros and cons of using PayPal to convert your online seller profits into Canadian dollars in this detailed review. Read more…
