You’re standing in a bustling market in Cusco, the scent of grilled anticuchos filling the air, and you reach into your pocket to pay. If you’re expecting to use a handful of US dollars for every little thing, you might want to pause for a second. While Peru is incredibly welcoming, the way money moves here is specific, sometimes a bit finicky, and has changed quite a bit recently.
The official currency in Peru is the Sol (PEN).
You’ll see it written as S/ before the amount. Don't call it the "Nuevo Sol" anymore. Even though many older signs or even some bank apps might still use the old name, the government officially dropped the "Nuevo" (new) part back in 2016 to just keep things simple. It’s been "Soles" for a decade now, yet habits die hard.
Why the Sol is Actually King
A lot of travelers assume that because the US dollar is so strong, it’ll be accepted everywhere. Honestly, that’s a myth that can cost you money. Sure, if you’re staying at a five-star Hilton in Miraflores or booking a high-end trek to Machu Picchu, they’ll take your greenbacks gladly. But for the "real" Peru—the taxis, the local Chifas, the souvenir stalls—you need Soles.
As of early 2026, the exchange rate has been hovering around 3.35 to 3.45 Soles per 1 USD. This is actually remarkably stable compared to some of Peru's neighbors. The Central Reserve Bank of Peru (BCRP) is famous for being one of the most disciplined in Latin America, which keeps inflation relatively low—around 1.5% to 2% recently.
If you try to pay a taxi driver in dollars, he’s probably going to give you a terrible "convenience" rate. You’ll end up paying 20% more just because you didn't have the local cash. Plus, getting change back for a $20 bill in a taxi? Forget about it.
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The Mystery of the Pristine Dollar
Here is something nobody tells you until you’re at the exchange window: Peruvians are obsessed with the physical condition of US bills. If your $20 bill has a tiny microscopic tear, a small ink mark, or just looks a bit "tired," most casas de cambio (exchange houses) will flat-out refuse it.
It feels personal. It’s not. It’s just that Peruvian banks won't accept damaged foreign currency from the exchange houses, so they pass that pickiness down to you. If you’re bringing cash from home, make sure it looks like it literally just came off the printing press.
Navigating the New Banknotes
The 200 Soles bill used to be like a unicorn—rarely seen and even more rarely accepted. However, the BCRP recently finished rolling out a beautiful new family of banknotes. These are colorful, vertical on the back, and feature some of the coolest security tech in the world.
- 10 Soles: Features José Abelardo Quiñones Gonzales. It's the bill you’ll use the most for quick snacks or short cab rides.
- 20 Soles: Features Raúl Porras Barrenechea. Great for a decent lunch.
- 50 Soles: Features Maria Rostworowski or Abraham Valdelomar. You’ll start seeing the "Rapid Detect" security threads here—those shiny bits that move when you tilt the note.
- 100 Soles: Features Pedro Paulet. Be careful with these in small shops; many vendors won't have the change to break a 100 early in the morning.
- 200 Soles: The new version features Tilsa Tsuchiya. It's pretty, but honestly, it’s still a headache to spend in small towns.
Spotting the Fakes
Counterfeiting is a real thing in Peru. You’ll often see locals holding a bill up to the light or rubbing it against a piece of paper. You should do the same. Real Soles are printed on 100% cotton. They feel "crisp" and have raised ink that you can feel with your fingernail. If a bill feels like regular printer paper or looks "blurry," don't take it. Always check your change, especially when getting out of a taxi at night.
The Digital Shift: Yape and Plin
You might see people paying for a 2-Sol bottle of water by scanning a QR code with their phone. This is the biggest change in Peru's economy in the last five years. The apps are called Yape and Plin.
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Roughly 70% of the working population uses Yape now. It’s everywhere—from the lady selling churros on the street to high-end boutiques. For a long time, tourists couldn't really join the party because you needed a Peruvian ID (DNI) or a local bank account.
Lately, though, more fintech options are opening up. If you can’t get the apps to work with your foreign card, don’t sweat it. Just know that when you see that purple "Yape" sticker, it means the merchant is tech-savvy.
ATMs and the "Hidden" Fees
Using an ATM is usually the smartest way to get Soles, but you have to be tactical. Most Peruvian ATMs will charge you a fee for using a foreign card.
- BCP (Banco de Crédito del Perú): Usually charges around 13 to 15 Soles per withdrawal. They have the biggest network, though.
- BBVA: Their fees can be even higher, sometimes 25 Soles.
- MultiRed (Banco de la Nación): This is the holy grail. These government-run ATMs often have zero fees for international cards. You’ll find them in almost every town square (Plaza de Armas) in the country.
Pro Tip: When the ATM asks if you want the bank to do the currency conversion for you, always say NO. This is a trick called Dynamic Currency Conversion. If you hit "Accept," the bank uses its own crappy rate. If you hit "Decline," your home bank does the conversion, which is almost always cheaper.
How Much Cash Should You Carry?
Peru isn't as cheap as it was in 2010, but your money still goes a long way.
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In Lima or Cusco, a nice meal at a mid-range restaurant will run you about 40 to 60 Soles ($12–$17 USD). A quick "menu" lunch (soup, main, and drink) at a local spot can be as low as 12 to 15 Soles. Taxis within a city usually range from 8 to 20 Soles depending on the distance—always agree on the price before you get in, as there are no meters.
I usually recommend keeping about 200 Soles in small denominations (10s and 20s) on you at all times. Use your credit card for hotels and big dinners, but keep that cash for everything else. Most modern shops in cities now use contactless "Tap to Pay," so as long as your card has that little Wi-Fi looking symbol, you’re golden.
Actionable Money Strategy for Your Trip
Before you board that flight to Jorge Chávez International Airport, do these three things:
- Get a No-Foreign-Transaction-Fee Card: If you’re still using a card that charges 3% every time you swipe abroad, you’re just throwing money away. Look into travel cards like Charles Schwab (which even refunds ATM fees) or Revolut.
- Bring "Emergency" Dollars in Mint Condition: Carry $200 in crisp, unbent, un-torn $20 bills. Keep them in a flat folder, not folded in your wallet. These are your "get out of jail free" cards if an ATM eats your card or the power goes out.
- Break Your Big Bills Early: When you withdraw cash, you’ll often get 100-Sol notes. Go into a large supermarket (like Wong or Plaza Vea) and buy something small to get change in 10s and 20s. You don't want to be stuck trying to pay a 7-Sol taxi fare with a 100-Sol bill.
Managing money in Peru isn't difficult once you understand the rhythm. Respect the Sol, keep your bills pretty, and always carry a bit of "chancay" (small change) for those unavoidable street snacks.