El Salvador is the smallest and the most densely populated country in Central America. El Salvador borders the Pacific Ocean between Guatemala and Honduras with its eastern-most region lying on the Gulf of Fonseca across from Nicaragua. As of 2009 El Salvador has a population of approximately 5 744 113 people composed predominantly of Mestizo mixed biracial Native American-European ancestry. The colón was the currency of El Salvador from 1892 to 2001 when it adopted the U.S. Dollar.