Panama's official currency is the Balboa, which is pegged 1:1 to the US Dollar — US Dollar notes are widely accepted and practical to carry. Credit cards are accepted in Panama City and larger towns, but cash remains important in rural areas, island communities and smaller restaurants. Tap water is generally safe to drink in Panama City but bottled water is advisable elsewhere. Panama operates on Eastern Standard Time (UTC−5) year-round. Tipping is not obligatory but is appreciated by guides and hotel staff — a modest discretionary amount is the norm. Light, breathable clothing is recommended throughout, with a warm layer for the Boquete highlands, and sun protection is essential on the Caribbean coast and at the Panama Canal.