El Salvador (República de El Salvador, Spanish pronunciation: [reˈpuβlika ðe el salbaˈðoɾ]) is the smallest and most densely populated country in Central America. It borders the Pacific Ocean between Guatemala and Honduras. It lies on the Gulf of Fonseca, as does Nicaragua further south. It has a population of approximately 6.8 million people (July 2008 Census) on 21,000 km2. The capital city of San Salvador is the most important metropolis of the republic. El Salvador eliminated its currency, the colón, and adopted the U.S. dollar in 2001. About a quarter of the population live on less than US$ 2 a day. —[WP]