2 Pesos

The Estado Soberano de Panamá was one of nine sovereign states within the Rionegran confederation of Colombia, each granted the right to issue its own currency under the 1863 constitution — an arrangement that produced a proliferation of provincial paper money across the isthmus and the interior. Panama's geographic position made it an unusual case: the transcontinental railroad had been operating since 1855, and the local economy ran on a mix of Colombian, American, and Chilean coin alongside whatever paper the state could float.

The American Bank Note Company printed this series under its earlier corporate name. Attribution to that firm is confirmed by the imprint, not inferred.