Learning about the currency of Peru
When travelling anywhere new, understanding your destination’s currency and how to handle money there is great trip groundwork as it prepares you to feel more financially confident and can help you avoid scams. Kandoo says: Anything you can do to enhance your safety while travelling is time well spent.
With this guide to handling money in Peru, we aim to arm you with everything you need to know about Peruvian currency, including where to check exchange rates, how to withdraw cash and exchange currency, how and why to use cash and general money safety in Peru. Whether you're spending time in Peru’s fascinating cities such as Lima and Cusco, exploring remote areas on a Macchu Picchu trek, or climbing Rainbow Mountain, taking precautions to keep your finances secure while enjoying your adventure can make a big difference.
What is the Currency of Peru?
Peru’s official currency is the sol (PEN). Introduced in 1991 and originally called the nuevo sol, it replaced the Peruvian Inti due to hyperinflation in the 1980s, which by 1990 had exceeded 7000% due to poor fiscal policies and political instability. In 2015, the name was simplified to sol. The sol is a stable currency compared to its predecessors and is widely accepted throughout the country. It’s worth knowing that the sol is an open currency so it is possible to obtain your money before you travel, should you wish.
Peru currency, in the form of cash, is broken down into banknotes and coins and it’s important to carry both these types of tender when travelling in Peru - we’ll explain why shortly. Banknotes are available in denominations of 10, 20, 50, 100, and 200 soles (plural for sol). Coins come in 1, 2, and 5 soles, as well as the smallest unit of money in Peru, the céntimo, which comes in coins of 10, 20, and 50 céntimos (1 sol = 100 céntimos).
One of the most common questions travellers have about the currency of their destination is what the exchange rate is like. Exchange rates fluctuate due to market conditions, inflation, and economic policies. Rates can vary daily, so travellers should monitor them using currency converter apps, financial news, or exchange rate websites to get the best value if and when exchanging money. We like xe.com - as well as being a reliable website, it is available as a downloadable app - from this, you can check whichever currencies you want to exchange to and from. Eg Peruvian sol to dollar, pound to Peruvian sol, etc.
What’s The Best Way to Pay in Peru?
If you’re wondering whether you need to carry cash when travelling in Peru or if you can get by only using credit or debit cards to pay for stuff, the answer is yes - you definitely need to have some cash while travelling in Peru. While major cities like Lima and Cusco widely accept Visa and Mastercard, smaller towns have limited card payment options. But you should be aware that it is common for fees to be added to card payments in many establishments that do accept them so check this first and with your own bank also, as some of these will charge a fee as well, resulting in double the amount of fees. If you are using a card to pay for anything, ask the vendor to charge you in the local currency, as this usually incurs fewer fees and gets you a favourable rate.
Peruvian banknotes and coins are much more widely used throughout Peru than payment cards and many places, particularly street vendors, small shops and taxis, will ONLY accept cash. Small denominations are especially handy for everyday transactions, tipping, and small purchases. If you’re an American traveller, you might also have read that cash in USD is accepted widely in Peru. While this is true, many vendors will charge a fee for the convenience and you might encounter difficulty receiving change. When buying souvenirs or other goods where haggling is commonplace, paying in cash in soles always gets you a better deal, so you’d be wise to change your USD to Peruvian sol.
Where Should I Exchange Currency in Peru?
If you do arrive in Peru with non-local currency and want to exchange it, you have a few options:
Casas de Cambio (Exchange Houses)
Using a casa de cambio in Peru is the best way to exchange your money. You’ll get reliably better rates and lower fees in comparison to other options. These exchange houses usually offer fair, transparent transactions and are widely available in the main cities of Peru. Always choose reputable locations though and check rates beforehand, just in case, to avoid scams.
Hotels and Airports
While they provide a safe and secure environment, and are convenient when travelling, exchanging your foreign currency at hotels and airports in Peru comes at a price. With poor exchange rates and high fees, hotels frequently offer currency exchange services, but their rates are usually less favourable than banks or exchange houses. Airports get you quick exchanges, but the rates are significantly worse, so it's best to exchange only small amounts and only if necessary.
Banks
Using a bank in Peru for foreign exchange is secure and usually offers fair rates, but it can be time-consuming due to long queues and additional paperwork. Banks require identification, and their exchange rates may not be as competitive as a Casa de Cambio. It's a reliable option but less convenient for quick transactions and you should allow for wait time in your day.
Money Changers
Money Changers in Peru are commonplace and you’ll often see them on the streets of lots of towns and cities. While they’ll offer you negotiable rates, sometimes better than banks or Casas de Cambio, using one puts you more at risk of being scammed. If you do choose to use them, exert caution. Look for official-looking changers wearing vests with identification, don’t be led off to anywhere quiet or secluded, and count your money carefully, checking for counterfeit banknotes. Additionally, avoid exchanging large amounts in one go - it’s not a good idea to have bundles of cash on show and discretion is essential to avoid drawing attention to yourself.
Where Can I Withdraw Cash When I’m Travelling in Peru?
ATMs in Peru
Withdrawing cash from ATMs is the most convenient option when visiting Peru. ATMs are widely available in cities, airports, and tourist areas, but less so in smaller towns and nonexistent in more rural areas - so plan ahead if you’re travelling to these places.
You’ll find a variety of banks in Peru, including Scotiabank, Interbank and BBVA. Some ATMs allow you to withdraw cash without a fee but check with your home bank for the cost of international withdrawals plus the information at the ATM itself so you can stay on top of any charges. Also worth bearing in mind are limitations on how much cash can be withdrawn per day - so again, planning ahead here is a good idea if you’re travelling to remote or rural areas.
Remember safety when using ATMs. Opting for those inside banks or vestibules is safer than using standalone machines on the street. Always shield your PIN and avoid withdrawing large sums at night or in isolated areas for added security. You can take extra caution checking for skimming devices by looking for loose or misaligned card slots, bulky keypads, or hidden cameras near the ATM. Tug the card reader gently, and look for unusual attachments. Having your wits about you costs nothing.
Many ATMs in Peru will give you the option of withdrawing USD and while this might be tempting for American travellers who don’t want to return home with any foreign currency and while many vendors will welcome USDs, you’re always better off opting for local currency to avoid the additional exchange fees of converting PEN to USD.
Money Transfer Services in Peru
While most people will have the ability to withdraw cash using their card, it’s worth knowing about accessing Peru money transfer services, in case of emergencies. To receive a money transfer to Peru, use a reliable, recognisable money transfer service such as Western Union or MoneyGram. MoneyGram has partner financial institutes throughout Peru so always visit an authorised location with your passport and a tracking number (MTCN). You’ll be required to fill out forms and confirm sender details. You’ll also have the option of collecting your money in Peruvian soles or USD but again, we advise local currency to be on the safe side.
Casas de Cambios or Hotel Cash Advances in Peru
Some casas de cambio in Peru allow cash withdrawals using international debit or credit cards, but they may charge high fees, so they aren’t the most frugal choice. If you do need to use this service, always choose a reputable exchange house, check rates beforehand, and ensure the transaction is secure to avoid fraud or overcharges.
Additionally, some hotels in Peru offer cash advances on credit cards, but fees can be high - both from the credit card provider itself - and the hotel, plus the exchange rates they offer are often unfavourable. This service is perhaps convenient in emergencies, but it's best to use ATMs for better rates and lower fees.
Final Thoughts on Money in Peru
Understanding Peruvian currency and planning ahead for withdrawals and payments will help you avoid unnecessary hassles. Always carry a mix of cash and cards, keep an eye on exchange rates, and be mindful of security to ensure a smooth and enjoyable trip in this beautiful country.
In major cities like Lima, Cusco, and Arequipa, credit and debit cards such as Visa and Mastercard are widely accepted. However, in smaller towns, markets, and family-run businesses, cash is the preferred or only option. If you're heading on a trek, such as the Inca Trail or visiting remote areas carry enough small banknotes and coins as change is often scarce. Always have enough Soles on hand for transportation, food, and accommodation in rural areas. Above all, without feeling paranoid, stay vigilant when travelling as this can help you and anyone else you travel with.
Travel with Kandoo and feel the benefit of joining a group trip. Your local guide will be able to help find you the safest places to withdraw money, exchange currency and help negotiate the best rates. Let us help you find your next adventure to Peru - check out our trips today!