Everything You Need to Know About Handling Money in Peru

For those of you planning your first visit to Peru, we’ve compiled the most important information you need to know regarding payments in Peru: the most useful denominations in soles, how to recognize counterfeits, when you can pay with credit cards and American dollars, etc.

 

Peruvian Soles

The currency of Peru is the Nuevo Sol. In general, you’ll find smaller denominations to be more useful. Coins and 10- and 20-sol bills are the most desirable, because it’s easier for smaller vendors and taxi drivers to make change. If you have 50-, 100-, or 200-sol bills, try and use them during larger purchases in order to make change. It’s wisest to split your money up into different pockets as you have, placing the coins and small notes in your outer pockets as “easy access” money. Larger bills should be less accessible, as petty theft (pickpocketing) can be a problem.

Peru is the counterfeit capital of the world- fake bills are churned out at an alarming rate, as well as, to a lesser extent, fake 2 and 5 sol coins. You’ll notice upon paying cash that the money you hand over is briefly inspected before being accepted. Take a lesson from the locals and verify your bills as well.

Check for counterfeit soles with these methods:

• Tilt: The easiest method is to tilt the bill back and forth to see if the large number declaring the bill’s value changes color from purple to gold-green. There’s also a “hidden value” number which should appear as you tilt the bill appear. (This is illustrated below.)
• Feel: Soles are printed on a resilient 100% cotton ‘paper’, not normal paper, giving it a unique texture. Although it’s harder to check on older bills, you can run your nail over the national emblem and the text which reads “Central Reserve Bank”, as these should be printed in relief.
• Look: Hold the bill up against the light and find its watermark- they vary according to the bill but should always be formed by different thicknesses of the paper itself, giving it a sharp and 3D multi-tone look.  Fake watermarks are mere printed atop the paper in blurry gray ink and appear flat. (This is illustrated below.) Another thing you can look for is the security strip: Up against the light you should see “PERU” and the value of the bill (10, 20…) and a shimmering band with the letters “BCRP” and the value again.

Paying with Debit & Credit Card

ATMs are easy to find, and offer money in both Peruvian soles and American dollars. The most commonly accepted credit card is Visa, followed by MasterCard. Many businesses are unable to accept payment by credit card, so make sure to enquire about this beforehand, even if the restaurant or hostel in question has a sign displayed which advertises them. Sometimes, due to local fees, a surcharge will be added to payments made with credit card but not to payments made with cash.

Paying with American Dollars

If an establishment can’t accept credit cards, and you don’t have enough Peruvian soles, check if you can pay with U.S. dollars. It’s rare to find a travel agency or hotel that doesn’t accept dollars in Peru, and you can even pay in dollars in many restaurants located in tourist-centric areas such as downtown Cusco. One caveat, however: dollars and other foreign currency must be in pristine shape – nicked, taped, or overly folder bills will be rejected even by money-changers, immigration border officials, and banks. For this reason, you shouldn’t accept foreign currency that is not in new condition either, as you won’t find it easy to use.