Overview of the Peruvian Currency

The official currency of Peru is the Nuevo Sol (PEN), often called simply the sol. One sol is divided into 100 centimos. Banknotes come in denominations of s/10, s/20, s/50, s/100 and s/200, while coins circulate in 10, 20 and 50 centimos and 1, 2 and 5 soles. You may find US dollars accepted in tourist hotels and upscale restaurants, but paying in soles usually yields better exchange rates.

Cash vs Cards

Peru is still largely a cash‑based society. Small shops, markets and taxis accept only cash and often lack change for large bills. Credit and debit cards (Visa and MasterCard) are widely accepted in hotels, restaurants and large tourist attractions. Always carry a mix of cash and card; keep small bills handy for tips and small purchases.

Where to Exchange Money

You can exchange money before arriving in Peru or once in the country. For the best rates, exchange at official currency houses (cambios) in city centres. Avoid airport or hotel kiosks, which often have less favourable rates. Merchants and banks scrutinise US dollar notes for damage; torn, stained or marked bills may be rejected. Bring pristine notes and ask for your change in small bills.

When exchanging, always count your money on the spot and keep receipts. Consider converting just enough to cover immediate expenses; many ATMs allow you to withdraw soles or US dollars directly.

Using ATMs

ATMs are widely available in cities and tourist areas and offer 24‑hour access to cash. They belong to local banks like BCP and international banks like Scotiabank. Withdrawal limits typically range from S/400 to S/3,000 and fees vary from S/0 to S/36 per withdrawal. Most machines require a four‑digit PIN and accept major cards, though Visa is the most commonly accepted.

ATMs can be scarce in remote towns and along trekking routes. Always have a backup plan: carry extra cash and a second card in case of network outages or machine errors.

Safety & Smart Spending

Follow these tips to manage your money safely:

  • Use local currency: Paying in soles helps avoid hidden conversion fees and yields better rates. Keep USD for emergencies or large purchases.
  • Break large notes: Ask for small bills when changing money. Vendors in rural areas rarely accept s/200 notes.
  • Avoid damaged bills: Banks and cambios may refuse US dollars with tears, holes, stamps or excessive wear.
  • Know your ATM fees: Your home bank may charge $3–5 per withdrawal and Peruvian ATMs add S/17–32 in fees. Minimise fees by withdrawing larger sums and using ATMs attached to banks, which are safer.
  • Keep cash secure: Use a money belt and split your funds between wallet, hotel safe and hidden pockets. Avoid counting money in public.
  • Choose card currency: When paying with a card, insist on being charged in soles. This prevents hidden exchange rate mark‑ups.
Tip: Combining Cash & Technology

Mobile payment apps such as Yape and Plin are increasingly popular in Peru’s cities. They allow residents to transfer soles instantly with a phone number. While not yet ubiquitous among travellers, these apps can be useful if you open a local account or make friends in Peru.

Tipping & Payment Etiquette

Tipping is not mandatory in Peru but is appreciated for good service. Round up taxi fares and give a few soles to porters or bellhops. In restaurants, leave 10 % if no service charge is included. For multi‑day tours, tipping guides S/20–35 per person per day is customary.

Conclusion

Understanding how money works in Peru will help you travel confidently. Carry cash in small denominations, choose reputable currency exchange houses, use ATMs strategically and insist on local currency when paying by card. With these tips, you can navigate Peru’s financial landscape and focus on enjoying your journey.