Palau - Money

Palau uses the U.S. dollar as its currency. This has the advantage of bypassing the expense of running a central bank. Also, the currency is completely convertible,

Exchange rates: Palau
US$
Jan 2001 1.0000
2000 1.0000
1999 1.0000
1998 1.0000
1997 1.0000
1996 1.0000
Note: US currency is used in Palau.
SOURCE: CIA World Factbook 2001 [ONLINE].

and price stability is reasonably well ensured, as Palau does not have the ability to print currency. The rate of inflation was less than 3 percent a year from 1996-98. The only drawback for "dollarised" economies is that they do not earn the seigniorage (the profit earned from the minting of coins) they would gain if they issued their own currency. The increasing number of countries that have been attracted to using the U.S. dollar in place of a domestic currency has caused the United States to consider sharing some of the seigniorage it earns as a currency issuer.

User Contributions:

Beth
Report this comment as inappropriate
Feb 6, 2013 @ 4:16 pm
I was born in Palau in 1973 while my parents taught at the school, Amos, and Bethania. I was given quite a bit of Palau money both in tortoise shell and the necklaces. Is there any way to exchange the Palau currency into US money. I am curious how this works. Thanks- Beth

Comment about this article, ask questions, or add new information about this topic:

CAPTCHA


Palau forum