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Peru currency guide: What is the Peruvian sol, and how does it work?

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Peru’s stunning landscapes and historical structures are only some of the reasons why it’s a tourist hotspot. Beyond the scenery, visitors are also drawn to its local culture and food options. No matter the length of your stay, staying liquid and having easy access to your funds will make your time in the country much smoother.

If you’re preparing for a trip, one of the first questions to ask is: What currency does Peru use? Since U.S. dollars aren’t the most accepted form of payment in Peru, you’ll need to familiarize yourself with the local currency: the Peruvian sol (PEN), represented by the symbol S/. Understanding the exchange rate and its specifics can help you avoid overpayments when exchanging money or making international transfers. It will also help you manage your money more efficiently throughout your stay.

You can use services like BOSS Money to help manage your dollar-to-sol exchanges and transfers, at a transparent rate and without hidden fees. Still, before using any money service, it’s best to first understand the sol itself. Here are a few things you should know about Peru’s currency.

What is the currency in Peru?

A common question that most travelers ask is: What is the money called in Peru? The official currency of Peru is the Peruvian sol. It’s symbolized by S/ and has been assigned the ISO code PEN according to the international currency code. Sol is issued by the Banco Central de Reserva del Perú (BCRP), the central bank of Peru. Introduced in 19911, it replaced the Peruvian inti due to hyperinflation.

The sol was originally called “nuevo sol (new sol),” signifying a "new" era of currency stability after the economic turmoil of the 1980s. In 2015, Peru passed Law 303812 and the term "nuevo" was dropped, reflecting a maturation of the Peruvian economy and the sol's relative stability.

The sol has experienced significant stability compared to many other Latin American currencies, such as the Argentine peso or Venezuelan bolivar. Supported by Peru’s strong tourism industry, the sol is commonly exchanged against widely used currencies like the U.S. dollar.

What does PEN mean?

The code PEN comes from ISO 4217, an international standard that assigns three-letter codes to each currency used globally. This standard is essential for identifying and distinguishing currencies when conducting international transactions, which include money transfers, exchanges, and check processing.

When transferring money internationally, using the correct ISO 4217 code (PEN3) ensures that the funds are identified and processed in the intended currency. Without it, any money transferred could be misdirected, leading to errors and delays. This is particularly important for services like BOSS Money. In BOSS Money transfers, the PEN code is shown as the recipient’s currency to help confirm that your funds are being sent in the proper denomination.

Peruvian sol: Coins and banknotes

The sol is a symbol of Peru's cultural heritage and national pride. Alongside making regular updates to the sol’s designs and security features, the Central Reserve Bank of Peru ensures that the currency remains secure and reflects the country’s rich history.

Peru introduced a new family of banknotes between 2021 and 2023. The series included new 10- and 100-sol notes4 launched in July 2021, followed by new 20- and 50-sol notes5 in July 2022, and a new 200-sol note6 in December 2023.

Banknotes

The Peruvian sol banknotes7 are issued in the following denominations: 10, 20, 50, 100, and 200 soles. Each bill features prominent figures from Peruvian history, as well as cultural symbols and landmarks.

10 soles:
features Maria Isabel Granda Larco, one of Peru’s most famous singers and songwriters. The back showcases a Vicuña, the wild ancestors of Peru’s domesticated alpacas.
20 soles:
features José María Arguedas Altamirano8, one of the most important figures of 20th-century Peruvian literature. The back showcases the condor and the Cantuta flower.
50 soles:
features María Rostworowski Tovar9, a prominent historian and researcher of Andean culture. The back showcases a jaguar and the Puya Raimondi, a native Peruvian plant.
100 soles:
features Pedro Paulet, a Peruvian diplomat and scientist. The back showcases a hummingbird.
200 soles:
features Tilsa Tsuchiya10, a Peruvian surrealist painter known for her surrealist art inspired by Andean mythology. The back showcases Peru's national bird and the Bella Abanquina flower.

The BCRP has been enhancing the security features of banknotes in recent years to combat counterfeiting. The new bills introduced have enhanced features such as color-shifting inks, threads, watermark improvements, tactile marks, and updated anti-counterfeiting design.

Coins

Coins in Peru are issued in the following denominations: 1, 5, 10, 20, and 50 céntimos and 1, 2, 5 soles. Note that smaller coins (1 and 5 centimos) are no longer used in everyday transactions. The 1-centimo coin was removed in 201111, and the 5 centimos in 2019. They still exist, but it’s unlikely you’ll run into them often.

1, 2, and 5 soles are the larger coins and are bimetallic. All coins show the coat of arms of Peru surrounded by the text “Banco Central de Reserva del Perú” on the front, while the back displays the coin’s denomination.

Keep in mind that small change comes in handy for paying fares, shopping at markets, or leaving tips.

Can you use U.S. dollars in Peru?

You might be wondering: Does Peru accept U.S. dollars? In popular tourist destinations in Peru, such as Cusco, Lima, and Machu Picchu, dollars are sometimes accepted as a form of payment, especially in hotels, high-end restaurants, and tourist shops. However, the sol remains the most practical currency for everyday transactions. 

Below are some key disadvantages of paying in U.S. dollars in Peru:

Poor exchange rates:
Many places that accept dollars apply less competitive rates, meaning you could end up paying more for goods or services than if you used soles.
Limited acceptance:
Smaller shops, local markets, and remote areas typically only accept soles.
Inconvenient for small transactions:
Vendors may not have sufficient change if you pay in dollars.
Risk of receiving counterfeit bills:
Businesses may not have the proper tools to authenticate dollar bills, and you may receive counterfeit dollars in return.
A good way to avoid these issues is to use a reliable money transfer service such as BOSS Money (which has a fixed exchange rate) to send money to yourself or exchange your dollars for soles in advance. Using soles ensures seamless transactions without logistical complications, giving you better control over your finances while you’re in Peru.

Should I exchange money in the U.S. or Peru?

When deciding whether to exchange currency in the U.S. or Peru, there are some pros and cons to consider for each option:

Exchanging in the U.S.

Converting U.S. dollars to Peruvian currency in the United States allows you to lock in an exchange rate in advance, offering predictability and convenience. U.S.-based currency exchange services like banks or exchange bureaus may also offer competitive rates compared to some local exchanges in Peru, especially in touristy areas where rates can be less favorable.

One downside of converting dollars to soles in the United States is that exchange fees can be higher at banks and exchange services compared to rates in Peru, where competition among exchange houses might drive down costs. You might get less favorable rates due to the limited availability of soles in U.S. financial institutions, especially outside major cities.

Exchanging in Peru

Converting dollars to soles in Peru generally provides access to more competitive exchange rates, particularly at local exchange houses (casas de cambio), which often offer better rates than airport counters. It also allows you to exchange funds gradually, converting only what you need based on your spending patterns and travel plans. It’s best to avoid street exchange booths. 

The main drawback of exchanging dollars in Peru is the lack of transparency in some informal exchange spots, where tourists may be offered unfavorable exchange rates or even counterfeit bills. Some areas may only accept specific denominations of dollars, and if you're unfamiliar with local exchange processes, you might get an unfair exchange rate.

To be safe, exchange a small amount in the U.S. before departure, then obtain the remaining soles through reputable banks or online money transfers once in Peru.

Tips for using money in Peru

Here are a few practical tips to help you handle your sol/money efficiently and safely while in Peru:

Check your bills (especially when exchanging them on the street):
Always check the authenticity of your bills, particularly in tourist hotspots.
Carry small bills for everyday purchases:
Keep smaller bills (such as 10 soles or 20 soles) for everyday purchases. Many small shops, taxis, and local vendors may have limited change for larger denominations.
Use official currency exchange offices or ATMs from major banks:
Always exchange money at licensed currency exchange offices or use ATMs operated by major banks to get a fair exchange rate.
Avoid exchanging old or torn dollars:
Don’t exchange dollar bills with rips, stains, or excessive wear since these may be rejected by exchange counters. When converting dollars to Peru money, only go to reputable banks or regulated money changers.
Check the current PEN/USD exchange rate before exchanging:
Always check the current exchange rate before converting money. Money transfer apps or websites like XE.com or OANDA can provide up-to-date exchange rates.
Send money online through licensed services:
If you need to send money back home or within Peru, opt for licensed online money transfer services like BOSS Money, which provides transparent rates and doesn’t charge hidden fees.

Conclusion

Peru’s official currency is the Peruvian sol (S/), and getting familiar with it before traveling can make managing your finances significantly easier, whether it’s for daily expenses or larger purchases. Don’t rely on the dollar alone—while it’s accepted in some places, soles are recommended for better rates and smoother transactions.

For travelers and money senders, BOSS Money is a reliable way to transfer USD to PEN to yourself at a fair rate. If you want to make sure that your soles are well spent without any delays or hidden fees, create a BOSS Money account before your Peru trip.

Sources: all third party information obtained from applicable website as of October 28, 2025

  1. https://www.britannica.com/money/nuevo-sol#ref837087

  2. https://www.bcrp.gob.pe/en/banknotes-and-coins/coins.html

  3. https://www.iban.com/currency-codes

  4. https://www.coinworld.com/news/paper-money/peru-releases-its-first-notes-in-new-series

  5. https://www.coinworld.com/news/paper-money/bank-of-peru-issues-20--50-sol-notes-featuring-20th-century-people

  6. https://www.imf.org/en/Publications/fandd/issues/2025/03/currency-notes-valued-visionary-natalia-venegas-figueroa

  7. https://www.limaeasy.com/peruvian-money-guide/current-peruvian-banknotes-coins/current-peruvian-banknotes#:~:text=The%20new%20Peruvian%2010%20Soles,province%20in%20the%20Apur%C3%ADmac%20region.

  8. https://www.theibns.org/joomla/index.php?option=com_content&view=article&id=877&catid=13&Itemid=51

  9. https://banknotenews.com/?p=37178

  10. https://www.coinworld.com/news/paper-money/peru-200-sol-note-completes-series-started-in-2021

  11. https://www.banknoteworld.com/Coins/Coins-by-Country/Peru-Coins/


This article is provided for general information purposes only and is not intended to address every aspect of the matters discussed herein. The information in this article is not intended as specific personal advice. The information in this article does not constitute legal, tax, regulatory or other professional advice from IDT Payment Services, Inc. and its affiliates (collectively, “IDT”), and should not be taken or used as such by any individual. IDT makes no representation, warranty or guaranty, whether express or implied, that the content in this article is current, accurate, or complete. You should obtain professional or other substantive advice before taking, or refraining from, any action on the basis of the information in this article.

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