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When traveling to Peru, especially to iconic destinations like Machu Picchu and Cusco, understanding the use of currency is crucial for a smooth experience. While the official currency is the Peruvian Sol (PEN), many tourists wonder if they can use U.S. Dollars (USD) during their stay. The good news is that USD is widely accepted in tourist areas, including hotels, restaurants, and some shops. However, for smaller vendors and local markets, it is advisable to use the local currency.

In major cities like Cusco, ATMs are readily available, and they typically dispense both Soles and sometimes USD. It is prudent to notify your bank beforehand to avoid any issues with international transactions. Additionally, exchange services are plentiful, and you can often find better rates in local banks compared to airports.

Be mindful that when paying with USD, change may be given in Soles, so it’s a good idea to familiarize yourself with the current exchange rate. In Machu Picchu, while some vendors may accept USD, it is best to have Soles on hand for snacks, souvenirs, or restroom fees.

When navigating through the Sacred Valley, expect to see a mix of both currencies, but always carry some Soles for local experiences. Keep in mind that counterfeit currency can be an issue, so only accept crisp, clean bills.

Lastly, tipping is customary in Peru, and while you can tip in either currency, using Soles is appreciated by locals. Learning a few basic Spanish phrases can also enhance your interactions and show respect for the local culture.