The currency of Palau is the United States dollar (USD). Palau, a small island nation in the western Pacific Ocean, uses the USD as its official currency, which simplifies trade and economic interactions with the U.S. and other nations that utilize the dollar. The U.S. dollar was adopted in 1944, and since then, it has facilitated stability in Palau's economy. Alongside the dollar, Palau also issues its own coins, known as Palauan national coins, which commemorate local culture and heritage. Using the USD helps streamline tourism and international business, given its global acceptance and reliability.