The Republic of Palau is an island country located in the Micronesia subregion of Oceania in the western Pacific Ocean. It consists of approximately 340 islands and is the western part of the Caroline Islands, while the eastern and central parts make up the Federated States of Micronesia. Palau shares maritime boundaries with international waters to the north, the Federated States of Micronesia to the east, Indonesia to the south, and the Philippines to the northwest. The city of Ngerulmud is the capital and is located on the largest island of Babeldaob, in Melekeok State. Palauan is the official language; and the U.S. Dollar is the national currency.