Flag of Palau, adopted on 1 January 1981
HISTORY AND ETYMOLOGY
Palau has an interesting etymology explanation. While most sources state that Palau comes from the local name Belau, derived from the Palauan word for village, beluu, some other sources say the name comes from aidebelau, a word for indirect replies in the Palauan language. This refers to the creation myth of Palau.
Read more on this page.
Pre-Columbian Palau
Somewhere in time between 3000 to 1000 BC, Indonesians or Austronesians settled on the island. Afterwards, they were replaced by the Pygmy or Melanesian people. Finally, it was the Micronesians who are the main ancestors of the current population of Palau.
Discovery of Palau by Westerners and colonization
Palau became a part of the Captaincy General of the Philippines of the Spanish Empire after its conquest in 1565. It was first discovered, or rather, found, on 28 December 1696, when Palauans shipwrecked near the Philippines and were interviewed by a Czech missionary named Paul Klein. After the Palauans used stones to represent the islands of their homeland, Klein turned this into a reported and Palau was discovered.
Afterwards, after three failed attempts, the Spanish finally colonized Palau, based on the report by Klein. Some people traded with the Islanders, especially British people. Subsequently, after Spain's loss in the war against America, Palau, along with some other islands in the Carolines, were traded to the Germans.
World War I, II and their independence
Koror chiefs just after Japanese annexation, 1915
Japan annexed Palau as a part of their South Pacific Mandate after defeating Germany in World War I.
However, fates changed as Japan joined Germany during World War II and the Americans annexed Palau in 1944. After the wars, it was ruled by the USA under the Trust Territory of the Pacific Islands.
Finally, Palau opted for independence rather than joining Micronesia in 1982 and was officially independent on 1 October 1994.
CURRENCY AND COINS
Obverse of the 1 Dollar coin (commemorating the Independence of Palau)
© ngdawa
Although Palau gained independence from the USA in 1994, it still uses the United States dollar as its official currency. However, it issues commemorative, non-circulating coins by its own. Historically, Palau followed the currency of the ruling nation or empire.
Coins from the Republic of Palau