Although Palau is an independent nation, which official currency does it use for all everyday transactions?
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Palau uses the United States dollar as its official currency. This arrangement stems from the Compact of Free Association, a treaty signed with the United States after Palau transitioned from being a UN Trust Territory to an independent nation in 1994. Under this agreement, the US also provides defense and financial aid to the island nation.
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Source: Wikipedia (CC BY-SA)
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