So, you’re finally heading to the Land of the Incas. You’ve got the hiking boots, the raincoat, and a blurry screenshot of a Machu Picchu map. But then it hits you while you're packing: what money do they use in Peru, and am I going to get stuck at a llama farm with the wrong bills?
The short answer is the Peruvian Sol (PEN).
Honestly, it’s one of the most stable currencies in South America, which is a relief if you've traveled nearby and dealt with wild price swings. But there is a whole lot of nuance to how you actually use it. If you walk into a market in Cusco with a 100-sol bill to buy a small souvenir, you’re basically asking for a headache.
The Official Currency: Meeting the Sol
The official currency of Peru is the Sol. You might still see it written as "Nuevo Sol" in some older textbooks or dusty corners of the internet, but they dropped the "Nuevo" (new) part back in 2016. It’s just the Sol now.
When you’re looking at price tags, keep an eye out for the symbol S/.
If you see a sign that says S/10, that’s ten soles. As of early 2026, the exchange rate hovers around 3.36 soles to 1 US Dollar. Obviously, that fluctuates daily. It’s a good idea to download an app like XE Currency before you land so you aren't doing frantic mental math at the airport terminal.
The Paper and the Metal
Peruvian money is actually pretty beautiful. The banknotes come in denominations of 10, 20, 50, 100, and 200 soles.
Recently, the Central Reserve Bank of Peru released a stunning new series of bills. They feature icons like Maria Rostworowski and the Andean Cock-of-the-rock. They feel crisp and high-tech, but don't worry—the older series with the historic figures like José Abelardo Quiñones are still perfectly legal tender.
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For the small stuff, you’ll use coins:
- 1, 2, and 5 soles (these are hefty and feel like "real" money).
- 10, 20, and 50 céntimos (cents).
You might notice there are no 1 or 5 cent coins anymore. They phased those out because they were basically worthless in terms of buying power. If your grocery bill ends in S/9.99, they’ll just round it to the nearest 10 céntimos.
Can You Just Use US Dollars?
Kinda. But it's complicated.
In big cities like Lima, Cusco, and Arequipa, many hotels, upscale restaurants, and tour agencies will happily quote you prices in USD. They might even accept your crisp twenty-dollar bills.
However, there is a massive catch: condition is everything.
Peruvians are incredibly picky about the physical state of US dollars. If your five-dollar bill has a tiny 2-millimeter tear or a "dirty" smudge, it will likely be rejected. It sounds like an exaggeration until you’re standing at a counter and they hand your money back because of a microscopic crease.
Expert Tip: If you bring USD, make sure they are "ATM fresh." No folds, no stamps, no tears.
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Even when they do accept dollars, the exchange rate they give you at a shop will almost always be worse than what you’d get at a bank. You’re essentially paying a "convenience tax." For taxis, local markets, and street food (the best part of Peru, honestly), you absolutely need soles.
Where to Get the Best Exchange Rates
Don't use the airport exchange booths. Just don't.
The rates at Jorge Chávez International Airport in Lima are notoriously bad. You'll lose a significant chunk of change right off the bat. Instead, wait until you get to your hotel or a major district like Miraflores.
The "Cambistas" (Street Changers)
In cities, you’ll see people wearing bright vests (usually maroon or blue) with "S/" and "$" symbols on them. These are Cambistas. They are registered street money changers.
It feels a bit "shady" to change money on a sidewalk if you aren't used to it, but it’s a very common practice in Peru. They often have better rates than the banks. Just be smart—don't pull out a massive wad of cash in the middle of a crowded plaza. Do the transaction, count your money, and tuck it away quickly.
Casas de Cambio
These are official exchange houses. They are usually small storefronts and offer a great middle ground between the safety of a bank and the speed of a street changer. You’ll usually need to show your passport to exchange money here.
ATMs and Credit Cards: The Reality Check
Can you use your card? Yes, in many places.
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Visa is the king in Peru. Mastercard is a close second. If you have an American Express or Discover card, you’re going to have a harder time finding merchants that accept them outside of five-star hotels.
Paying with Plastic
When you pay with a card at a restaurant, the waiter will usually bring a portable POS terminal to your table. This is great for security because your card never leaves your sight.
One weird thing: they might ask for your "DNI" or passport number. Since you’re a tourist, just give them your passport number or even your driver's license number. They just need to type something into the system for tax purposes.
ATM Strategies
ATMs (Cajeros) are everywhere in cities. Look for BCP, BBVA, or Scotiabank.
- The "MultiRed" trick: The Banco de la Nación ATMs (MultiRed) often don't charge a local fee for international withdrawals. This can save you about S/20 to S/30 per transaction.
- Withdrawal Limits: Most ATMs have a limit of about S/400 to S/700 per transaction. If you need more, you might have to do two separate withdrawals.
- Dynamic Currency Conversion: If the ATM asks if you want to "Accept the Conversion" to your home currency—choose NO. Always let your home bank do the conversion. The ATM's "guaranteed" rate is almost always a rip-off.
Common Money Scams to Dodge
Peru is generally safe, but there are some classic "gringo" money traps.
1. The Counterfeit Check
Peru has a bit of a reputation for high-quality counterfeit bills. When you get change, do the "look, tilt, touch" method. Look for the watermark, tilt it to see the color-shifting ink on the large number, and feel for the raised texture on the edges.
2. The "No Change" Game
Taxis are the main culprits here. You agree on a S/15 fare, you arrive, you hand them a S/50 bill, and suddenly they "don't have change."
Solution: Always carry a stash of 10 and 20 sol notes. Break your big 100-sol bills at supermarkets like Wong or Plaza Vea.
3. The Taxi "Dollar" Switch
Always clarify the currency before you get in a taxi. If they say "20," confirm: "20 soles, right?" Every now and then, a driver might try to claim they meant "20 dollars" once you reach your destination.
Practical Next Steps for Your Trip
To make sure your trip goes smoothly without any financial hiccups, here is exactly what you should do:
- Notify your bank that you'll be in Peru. If you don't, they’ll likely freeze your card the second you try to buy a pisco sour.
- Carry a mix of payment types. Don't rely 100% on one card. Bring a backup and keep it in your hotel safe.
- Collect small change. Treat 1-sol and 5-sol coins like gold. You’ll need them for public restrooms (which often cost S/1 or S/2) and small tips.
- Check your bills for damage. If you receive a torn sol note as change, politely ask for a different one. You’ll have a hard time spending it later.
- Use apps for transport. Use Uber or Cabify in Lima. The fare is set in the app, it's linked to your card, and it eliminates the "no change" or price-haggling drama entirely.