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.
An online money transfer service with cash pick-up, bank account to bank account and airtime transfers available.
Send money to Panama with WorldRemit
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.
Today’s exchange rate CAD to PAB
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.
SPONSORED: Bitcoin has been around for over a decade – does it really need an ETF?
Read more…
SPONSORED: J.P. Morgan suspects Bitcoin is on its way to becoming the new gold – but should you invest?
Read more…
SPONSORED: How to take your business global (and save a whole lot of money along the way).
Read more…Canadian investors will need an international stock trading account to invest in this popular British delivery service.
Buy into British Airways through its parent company, International Consolidated Airlines Group (IAG.L).
Beat the banks, find the best exchange rates and avoid fees when you send money abroad from Australia.
Find out how digital banks compare with dedicated money transfer services when sending money overseas.
Pay zero fees for safe and secure money transfers to over 120 countries.
SPONSORED: Fee-free services and special offers can help you save on your next international money transfer.
Invest in companies before they go public, but only if you’re an accredited investor.
SPONSORED: Mobile money transfers provide an easy, low-cost and contactless way to send money to loved ones overseas.
Paysend offers transfers to more than 70 countries through its app and online service.
Tangerine’s Visa Debit Card comes with unlimited free transactions. It allows users to safely shop online and make purchases while abroad like a credit card wherever Visa is accepted.
