When traveling to Peru, especially to iconic destinations like Machu Picchu and Cusco, understanding the currency situation is essential for a smooth experience. The official currency in Peru is the Sol (PEN), but you may also find that some businesses accept US dollars. However, it's advisable to use the local currency for most transactions.
While credit cards are widely accepted in urban areas and larger establishments, you might encounter places, particularly in more remote areas like the Sacred Valley or near Machu Picchu, that only accept cash. Therefore, it's prudent to carry a reasonable amount of cash for smaller purchases, such as souvenirs, food from local markets, or tips.
ATMs are readily available in major cities like Cusco and Lima, allowing you to withdraw cash in Soles. However, be aware of potential withdrawal fees from both your bank and the ATM provider. It's also wise to notify your bank before traveling to avoid any issues with card usage abroad.
When it comes to carrying cash, opt for small denominations as larger bills might not be accepted everywhere. Additionally, keep your cash secure in a money belt or a travel wallet to avoid theft.
In restaurants, it is common practice to leave a small tip, usually around 10% of the bill, in cash. While some establishments may allow you to add the tip to your credit card payment, cash is often preferred.
In summary, while credit cards are convenient for larger purchases in Peru, it's crucial to have cash on hand for smaller transactions and areas where card payment may not be accepted. Being prepared with both forms of payment will enhance your travel experience.
