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Palau is an archipelago of more than 500 islands, part of the Micronesia region in the western Pacific Ocean, well known for its scuba-diving and snorkeling sites. Northerly island Koror is home to the former capital, the majority of the population and the islandsí main commercial center. Neighboring Babeldaob has the modern capital, Ngerulmud, mountains and sandy beaches on its east coast. (wikipedia) Capital: Ngerulmud Continent: Oceania Currency: United States Dollar