Palau is divided into sixteen administrative regions, called states (the still separately listed Rock Islands did originally not belong to any state, but now belong to the state of Koror).
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, 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.
Palau is not renowned for its landmarks. However, there are a number of exciting places to explore that will get tourists away from diving and snorkeling for a few hours. Koror is where much of the action is found, but some of the areas around the busiest island city are also home to key attractions. The Rock Islands are extremely fascinating natural works of art, especially for visitors who experience the Jellyfish Lake phenomenon. Cultural aspects of Palau are located in the must-visit Belau National Museum.