Understanding the currency in Peru is essential for any trip, whether you’re planning a trip to Machu Picchu, Cusco, or Lima. This guide covers everything you need to know about Peru’s official currency, exchange rates, and how to handle money safely during your trip
Peru is generally considered an affordable destination for many international travelers, although costs vary depending on your activities, accommodation, and travel style. That’s why this guide covers the essential information you need to know about currency and money in Peru.
Before diving into the details, this short video gives you a practical overview of how money and currency work in Peru, including what cash to carry, where to exchange money, and how widely cards are accepted. It’s a helpful visual summary for travelers who want to feel prepared before arriving, and it complements the in-depth tips explained below in this guide.
The most important things to know about Peruvian money
- Peruvian Currency: The Sol (PEN)
- USD to PEN Exchange Rate in Peru
- Where to Exchange Money in Peru
- Avoid Damaged or Worn Banknotes
- How to Identify Counterfeit Money in Peru
- Tipping in Peru: How Much Should You Tip?
- Tips for Handling Money in Peru
- Frequently Asked Questions about Currency in Peru
- Conclusion
Peruvian Currency: The Sol (PEN)
The official currency of Peru is the sol (PEN), symbolized by “S/.”. The term comes from the ancient Peruvian money known as the “sol de oro”. Peru’s currency history dates back to the Spanish colonial period, when the real was used as a form of currency. In 1991, the nuevo sol was introduced as Peru’s official currency as part of a broader effort to stabilize the country’s economy.
Today, the Peruvian monetary unit is one sol, which is divided into 100 centimos. Soles appear on various banknotes and coins with denominations in soles and cents. Peru’s iconic symbols inspire the designs of its currency. Below is a brief table to help you understand the coins and banknotes.
| Coins | Inspired by: Important historical, cultural, and natural symbols, such as the vicuña, the cinchona tree, and the cornucopia. | Centimos | 10, 20, 50 |
| Soles | 1, 2, 5 | ||
| Banknotes | Inspired by: Relevant historical figures such as Abraham Valdelomar, Túpac Amaru II, and María Rostworowski, as well as historical sites and emblematic landscapes. | Soles | 10, 20, 50, 100, 200 |
USD to PEN Exchange Rate in Peru
The Peruvian sol fluctuates against other currencies, including the U.S. dollar. Exchange rates can change from day to day, and banks, exchange houses, and other providers may offer different rates and fees. Check the current rate before exchanging money so you can plan your travel budget accordingly.
Where to Exchange Money in Peru
Exchanging money in Peru is easy, especially in urban and tourist areas. We recommend comparing the different exchange rates before converting. Below are some of Peru’s most common options for exchanging foreign currency.
- Authorized exchange houses are generally a convenient and reliable option for exchanging money, and they may offer competitive rates and fees. U.S. dollars and euros are among the most commonly exchanged foreign currencies.
- Hotels and airports are convenient options for exchanging money, but their rates and fees may be less favorable. These options are viable for exchanging small amounts and only for necessary situations.
- Banks can be a reliable option, although the process may take longer and identification may be required.
- ATMs may allow you to withdraw either U.S. dollars or Peruvian soles, depending on the bank and location. However, exchange rates vary, and banks often charge a transaction fee. You can withdraw cash from ATMs at Peru’s main airports, including Jorge Chávez Airport and Velasco Astete Airport.
- While traveling in Peru, you may see people offering currency exchange services on the street. These people, commonly known as mobile currency exchangers, wear colorful vests and badges with the “$” symbol. Although street exchange services may offer attractive rates, they carry greater risks, so travelers are better off using authorized exchange services.
Avoid Damaged or Worn Banknotes
Many businesses and money changers may refuse damaged or heavily worn banknotes, including foreign currency. As a visitor, avoid accepting torn or severely worn bills whenever possible. For Peruvian banknotes, genuinely damaged notes may be exchanged through authorized financial institutions under the applicable BCRP rules.
Counterfeit money in Peru
Counterfeit banknotes can circulate in Peru, so it is useful to know some basic security features before accepting cash. These can be difficult to identify, especially if you are unfamiliar with local currency. You may also notice merchants checking banknotes before accepting them. Below are some recommendations for checking the banknotes you receive:
- Cotton is the primary material used to make banknotes. Therefore, we recommend feeling the raised texture of the banknote.
- Another easy way is to hold the banknote to the light to see the watermark. These watermarks usually have various shades and match the figures on the banknote’s front and back exactly.
- Banknotes in circulation feature security measures such as security threads and color-changing elements. Tilt the banknote slightly to check these features.
- Check the series and numbering of counterfeit banknotes on the Central Reserve Bank’s online platform. Although this is an unusual option, if you have doubts about your banknote, it may help clarify things.
As a tourist, you may not notice the subtle differences. If you have coins, for example, 20 and 50 centimos coins, this may not be a problem you should worry about. However, we recommend carefully considering large one-hundred or two-hundred soles (S/. 100 or S/. 200) bills.
Tipping in Peru: How Much Should You Tip?
Although many businesses now accept cards and digital payments, carrying some small-denomination soles is still useful for tipping, particularly when card payments are not available or tips cannot be added to the bill. Today, Peruvians and tourists use digital wallets, mobile apps, and credit and debit cards more frequently.
Tips for Handling Money in Peru
- Feel free to request a replacement for questionable bills when making a purchase.
- Don’t carry much cash; carry only what you need for the day.
- Those who want to pay by card can do so in many establishments.
- Take extra precautions with cash and payment methods when traveling to remote areas.
- Some establishments accept dollars in Peru; however, this isn’t common.
- Keep your bank’s contact information available in case your card is lost or stolen.
- If you plan to buy souvenirs in Peru at local markets, carrying cash can be useful.
Frequently Asked Questions about Currency in Peru
Can I negotiate a price?
Yes, bargaining can be common in some local markets for shopping and informal settings, although it is not generally expected in restaurants, supermarkets, or established stores.
What currency should I bring to Peru?
U.S. dollars can be useful for exchanging into Peruvian soles, particularly in major tourist destinations. However, soles are the most practical currency for everyday purchases.
Are credit and debit cards accepted in Peru?
Most businesses, restaurants, and hotels accept both credit and debit cards. This is especially true in Peru’s major cities, where many establishments accept Visa, MasterCard, and American Express cards.
Is it safe to use ATMs in Peru?
Yes, for greater security in Peru, use ATMs located inside banks, shopping centers, or other secure locations. Although most ATMs are safe, we recommend taking precautions in less crowded areas.
Should I tip in soles or U.S. dollars?
Travelers should use Peruvian cash, particularly for tips. While tipping isn’t widespread in Peru, leaving a 10% tip on your purchase is customary.
How much does 100 US dollars cost in Peru?
The value of $100 in Peru depends on the current USD-to-PEN exchange rate. Because rates change over time, check the latest rate before exchanging money or withdrawing cash.
What is the best currency to use in Peru?
The Peruvian sol is the best currency to use. Vendors typically list prices in soles, which may result in a less favorable exchange rate. However, in stores near tourist spots, some offer prices in dollars and soles.
Is US currency accepted in Peru?
Many businesses in Peru, particularly in tourist areas, may accept U.S. dollars. We recommend being especially careful with the exchange rate, as it tends to be unfavorable.
Is PEN the same as sol?
Yes, PEN is the international currency code for the Peruvian sol, Peru’s official currency.
Remember that exchange rates, payment options, and other financial information can change over time. Check current information before your trip, especially when planning currency exchanges or cash withdrawals. We recommend planning and taking all the abovementioned precautions, especially when handling large bills.
Conclusion
Understanding how money works in Peru can make your trip easier and more comfortable. The Peruvian sol (PEN) is the country’s official currency, and it is the most practical option for everyday purchases. While credit and debit cards are widely accepted in major cities and tourist areas, carrying some cash in small denominations is still useful for tips, local markets, transportation, and smaller businesses.
Before exchanging money or withdrawing cash, check the current exchange rate and compare your options. Use authorized exchange services or reputable ATMs, be cautious when accepting damaged banknotes, and take extra care when handling large denominations. With a combination of soles, cards, and a few simple precautions, you can manage your money confidently throughout your trip.
Whether you are exploring Lima, discovering Cusco, or preparing to visit Machu Picchu, knowing how to handle currency in Peru is one less thing to worry about. At Machu Travel Peru, our team can help you plan the practical details of your trip and create an experience tailored to your interests, schedule, and travel style.
Ready to start planning your journey to Peru? Contact Machu Travel Peru and let our local travel experts help you plan a seamless trip tailored to your interests and travel style.
