You're standing in a bustling market in Cusco, the smell of roasted corn hitting you, and you hand over a crisp bill. The vendor squints at it. They rub it between their fingers. They hold it up to the Andean sun.
Welcome to Peru.
If you call the money "nuevo sol," you're technically living in the past. Since 2015, it’s just the Sol. But old habits die hard, and honestly, most locals still use the old name interchangeably. Understanding the Peruvian sol isn't just about knowing the exchange rate—it's about navigating a culture where cash is king and "change" is a rare commodity.
The "New" Money that Isn't New Anymore
Back in the late 80s, Peru’s economy was a mess. Inflation wasn't just high; it was apocalyptic. The old currency, the Inti, became practically worthless overnight. In 1991, the government stepped in and birthed the nuevo sol.
It worked.
One nuevo sol replaced one million intis. Talk about a haircut. Today, the Sol is one of the most stable currencies in Latin America. It’s been so solid that the "nuevo" (new) part started feeling a bit silly after twenty-five years, so the government officially dropped it.
The ISO code is PEN, and you'll see it written as S/ followed by the amount. If you see an old coin that says "Nuevo Sol," don't panic. It's still legal tender. The Central Reserve Bank (BCRP) is pretty relaxed about letting the old and new designs circulate together, which is great for you but kinda confusing for your wallet.
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Why You’ll Struggle to Spend a 100 Sol Bill
Here is the biggest mistake travelers make: withdrawing S/100 or S/200 bills from an ATM and expecting to buy a bottle of water with them.
Good luck.
Small businesses in Peru are notoriously short on change (sencillo). If you try to pay for a S/5 empanada with a S/100 bill, the vendor will likely just shake their head. You've basically handed them a brick.
Breaking the Big Bills
To survive, you have to be strategic.
- Use your large bills at supermarkets like Wong or Plaza Vea.
- Pay for your hotel stay in cash if they give a discount.
- Chain pharmacies (like Inkafarma) usually have enough change.
- Always ask "Tiene sencillo?" before you commit to a small purchase.
Spotting the Fakes (It's Easier Than You Think)
Counterfeiting is a real thing here. It's why every taxi driver and shopkeeper looks at your money like they're investigating a crime scene. Don't take it personally. You should do the same.
The Peruvian sol has some of the coolest security features in the world if you know where to look. The 2026-era banknotes are made of high-quality cotton. They feel like fabric, not paper. If a bill feels "waxy" or like a standard A4 sheet of paper, give it back.
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The Three-Step Check
First, look for the watermark. Hold the bill to the light and look for the face of the historical figure. It shouldn't be a blurry mess; it should be sharp and match the main portrait.
Second, check the color-shifting ink. On the newer S/10, S/20, and S/50 notes, there’s a design (like a hummingbird or a mountain) that changes color from purple to green when you tilt it. It’s almost hypnotic.
Third, feel the texture. Run your fingernail over the text "Banco Central de Reserva del Perú." It should be raised. If it’s flat, it’s a fake.
The Current State of the Sol in 2026
Right now, the Sol is hovering around 3.36 to 3.40 per US Dollar. This is actually quite strong compared to its neighbors. For a long time, it sat closer to 3.70, but the Central Bank has been aggressive about keeping things steady.
If you’re bringing foreign cash, bring US Dollars. They are the second currency of Peru. Most high-end hotels and tour agencies in Lima or Cusco will list prices in USD.
Pro tip: Your dollars must be perfect. I mean perfect. If there is a tiny 1mm tear or a stray pen mark, a Peruvian bank will reject it. It’s a weirdly strict rule, but it’s non-negotiable.
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Where to Exchange Without Getting Ripped Off
Avoid the airport. Just don't do it. The rates at Jorge Chávez International in Lima are daylight robbery.
You’ve basically got three options:
- Casas de Cambio: These are official exchange houses. They usually offer the best rates and are very safe.
- Cambistas: You’ll see guys on the street in Lima wearing bright vests (usually green or blue) with a "$" sign. They are actually legal and registered. They give great rates, but use your common sense—don't flash a wad of cash in a dark alley.
- ATMs: Convenient, but watch the fees. GlobalNet ATMs are everywhere but charge a hefty commission. Look for BCP or Scotiabank machines; they often have better terms for international cards.
Coins You Actually Need
The coins are actually beautiful. The 1, 2, and 5 Sol coins are bi-metallic and feel heavy in the hand. The 5 Sol coin is particularly prone to fakes, so check that the laser-engraved lines on the back are crisp.
You’ll also deal with céntimos (cents). The 10, 20, and 50 cent pieces are common. Don’t bother looking for 1 or 5 cent coins; they were discontinued years ago. If a price ends in .99, the store will just round it down or up.
Practical Steps for Your Trip
Before you board that flight to Lima, do these three things:
- Check your USD bills: Inspect every single one. If it’s not mint condition, leave it at home.
- Download Yape or Plin: These are digital payment apps used by everyone from street food vendors to luxury boutiques. Even if you don't have a Peruvian bank account, some versions now allow international tourists to sign up with a passport. It saves you from the "no change" nightmare.
- Learn the "Touch, Look, Tilt" method: Spend five minutes on the BCRP website looking at the 200 Sol note (the one with Tilsa Tsuchiya). It’s the rarest bill, but also the most forged.
The Peruvian sol is more than just paper; it’s a symbol of a country that hauled itself out of economic chaos to become a powerhouse. Treat it with a little respect, check your watermarks, and always carry some sencillo in your pocket. You'll thank me when you're trying to pay for a bathroom in the Sacred Valley.
Actionable Next Steps:
Check the current BCRP official rate today to ensure you aren't overpaying at a casa de cambio. If you are heading to rural areas like the Amazon or high-altitude villages, withdraw all the cash you need in a major city like Lima or Arequipa, as ATMs become scarce and unreliable the further you get from the coast. Finally, always keep a stash of S/10 and S/20 notes in a separate pocket for quick transactions like taxi rides or street snacks.