What Kind of Money System Do They Have in Peru?
Peru's official currency is the nuevo sol, divided into 100 centimos. The nation has changed its currency twice since 1985 and, like many Latin American countries, has a de facto dual-currency system; it is easy to use and exchange U.S. dollars in Peru.
The nuevo sol has remained stable since its introduction in 1991. Peru is having problems with counterfeit dollars, however.
Other People Are Reading
-
History
-
Peru has devalued its currency many times because of runaway inflation, and renamed it twice. In the mid-1980s, Peru phased out its sol and introduced a parallel currency, the inti. When the inti became hyperinflated---because of a bad economy and terrorism, according to LimaEasy.com---Peru introduced the nuevo sol in 1991. One nuevo sol equaled a million inti.
Dual Currency
-
People in Peru use both the nuevo sol and the dollar. The two currencies remain fairly stable in relation to each other. Since introduction of the nuevo sol, the exchange rate has stayed around 3 nuevos soles per dollar, according to LimaEasy.com.
Even so, according to the Explore With Us---Peru! website, it is a good idea for American tourists to exchange some of their dollars for nuevos soles, because smaller shops and place in rural areas may not be equipped to accept dollars.
-
Circulating
-
Banknotes circulate in denominations of 10, 20, 50, 100 and 200 nuevos soles; there are also 1, 2, and 5 nuevos soles coins and 10, 20 and 50 centimos coins, according to LimaEasy.com.
Artwork
-
Peruvian banknotes and coins show historical figures and personalities. The 10 nuevos soles note shows aeronautics pioneer Jose Abelardo Quinones Gonzales; the 20 nuevos soles note pictures diplomat Raul Porras Barrenechea; the 50 nuevos soles note features writer Abraham Valdelomar Pinto; the 100 nuevos soles note features historian Jorge Basadre Grohmann; and the 200 nuevos soles note shows St. Rose de Lima, patron saint of Latin America.
Exchanging Money
-
You can exchange money at banks, at ATMs, or with street money-changers in shops throughout cities, according to EasyLima.com. Street money-changers are the most efficient way to go, the site says, because banks tend to have long lines and ATMs often disburse cash in inconveniently large denominations.
Counterfeiting Problem
-
Peru is becoming known as the counterfeiting capital of Latin America: In 2009, police seized more than $40 million in fake bills.
"Why is Peru a destination for counterfeiters?" asked Interior Minister Octavio Salazar in a 2009 interview with a Chinese news service. "Because the sentences are low. It's as if these people were up above observing organized crime. It's as if they had a satellite looking on where they can operate without worries. So we have to go out and confront this issue."
-
References
Resources
- Photo Credit icon,dollar, $, currency, us dollar image by creative from Fotolia.com
