The Republic of El Salvador, a Central American country bordered by Guatemala, Honduras and the Pacific Ocean, has an area of 8,260 sq. mi. (21,041 sq. km.) and a population of 6.32 million. Capital: San Salvador. This most intensely cultivated country of Latin America produces coffee (the major crop), sugar and balsam for export. Gold, silver and other metals are largely unexploited. ,The first Spanish attempt to subjugate the area was undertaken in 1523 by Pedro de Alvarado, Cortes? lieutenant. He was forced to retreat by superior Indian forces, but returned in 1525 and succeeded in bringing the region under control of the captaincy general of Guatemala, where it remained until 1821. In 1821, El Salvador and the other Central American provinces declared their independent from Spain. In 1823, the Federal Republic of Central American was formed by the five Central American States. When this federation was dissolved in 1829, El Salvador became an independent republic.,, ,A twelve-year civil war was ended in 1992 with the signing of a UN sponsored Peace Accord. Free elections, with full participation of all political parties, were held in 1994 and 1997. Armando Calderon-Sol was elected as president in 1994 for a 5-year term.,, ,On January 1, 2001, a monetary reform established the U.S. dollar as the accounting unit for all financial transactions, and fixed the exchange rate as 8.75 colones per dollar. In addition, the Central Reserve Bank has indicated that it will cease issuing coins and notes.,, Monetary System:,,, ,1 Peso = 100 Centavos to 1919,, ,1 Colon = 100 Centavos 1919-,,