The smallest and the most densely populated country in Central America. El Salvador shares borders with Guatemala and Honduras. The coastline on the Pacific is 307 km (191 mi) long. But it is the only Central American country that has no Caribbean coastline. Capital (and largest city): San Salvador. Currency: United States dollar (USD). The colón, the official currency of El Salvador since 1892, was replaced by the U.S. dollar in 2001.