Money and Value
Money
A section about money I'm sure you can understand why it's here, but 'Value' well I'll get to that.
The Peruvian currency is Nuevo Sol the Symbol is S/
Credit Cards
Visa is the most widely accepted credit card, but all credit cards attract at least, (make that at least!) a 7% surcharge unless you're making a cash withdrawal, (where Peruvian currency will be dispersed), from a Bank. At ATMs, Visa and MasterCard systems are the most widely recognized networks, followed by American Express. They are the best way to extract money in Peruvian currency or in US dollars.
In Lima, Iquitos and in Cusco and Pisac in the Sacred
Valley it's possible to use ATM's and it's one of the
easiest ways to get local currency. The exchange rates
using this method are fair and reasonable which is a big
plus.
It's well to note that in some of the more out of the way
places they will try to charge as much as 18 to 20% more if
you use a Visa Card. You may think you can haggle or argue
about this, you're mostly wasting your time. Just get out
of the habit of whipping out your card for general expenses
the way you might do back home. You may also have to wait
an extra ten or fifteen minutes as the shop assistant or
waitress heads out the door with your card in hand, (a bit
unnerving), down the street to use a friends Visa facility.
It's South America!
Banknotes are issued in denominations of 10, 20, 50, 100
and 200 nuevos soles.
Coins are issued in 1, 5, 10, 20 and 50 céntimos (cents),
and 1, 2, and 5 nuevos soles. There are 100 céntimos in one
nuevo sole.
Changing or accessing your money in Peru
The easiest currency to exchange is the US dollar. They don't really 'get' Euros, and with exception of the ATM's and the Banks, money changers often will try and give you a very bad rate of exchange. Other currencies are only exchangeable in major cities and tourist centers, often at a higher commission or lower rate. Money can be changed in banks, casas de cambio (currency-exchange houses), first-class hotels or with street changers. Casas de cambio are usually the easiest places to change money.
Street changers, who hang out near banks, never offer better rates than the best bank rate and have been known to cheat travelers with counterfeit bills. In my experience the Banks can as well. One Bank in Lima managed to rip me off to the tune of 100 dollars! Not by issuing counterfeit notes but by sleight of hand, the fact that it was a major Bank lulled me into a false sense of security.
I've always found the street money changers to be OK providing you use:
Barry's five streetwise rules of using Money Changers:
- Appear confident and seem to know what you're about.
- Know the going rate, (ask around in the hotel and restaurants).
- Check the paper currency you get, (or at least make a show of it)
- Pick a money changer that looks somewhat decent,
(I know this rule's a bit fluffy!). - Don't change a large amount of currency at any one
time.
(My more than you can afford to lose rule).
Rates vary from place to place but not significantly, unless you try to change money at a hotel, which may charge a high commission. Forget about Travellers cheques they're rarely accepted and are changed at a much lower rate than cash.
Taxi from the Airport - Lima
If you try and pay Taxis in dollars they will give you a really bad exchange rate, usually 30% or more the wrong way on top of what could already be a price which is double the normal rate for Peruvians. For all of our clients we arrange to have them met at Lima airport and taken directly to the hotel as otherwise this first Taxi ride from the airport to the city centre can be your first introduction to what I call the Gringo Tax - get as much as you possibly can from the tourists! More on this down the page.
Money Tips
Costs in Peru are lower, on average, than those in developed countries, but higher than those in many neighboring countries. Lima and Cuzco are the most expensive. Most expensive of all is ignorance. Find out what the going rates are for locals by asking.
Value
You probably think I'm going to cover haggling I am - yes haggle, pay a fair price, don't get ripped off, that's it covered.
What's more important here is having to work daily with the street vendors, the poverty and the children. In most towns and cities you're going to be approached by children and adults selling stuff, everything from postcards, finger puppets, posters, cigarettes, chewing gum, water bottle holders, and more.
You're also going to be asked for money over and over again.
I'd like here to write a little about a workable way to cope with all of this because in places like Lima, Cusco and Iquitos it can be relentless, depending where you are in the town. The only respite from it is out into the countryside, the Jungle or into the mountains of the Andes. It's a fact of life in South America and it needs to be approached with compassion combined with practicality. You can make a positive difference with your presence in Peru without feeling pressurised, ripped off or helpless in the face of all of this.
Perhaps this section may help a little and my heart goes out to some of the wonderful street kids and people I met especially in Iquitos and Yarina Village.
Rather than giving them money consider these options instead
- Some of the children are eager to learn English. For a start it increases their chances with tourists but it could also help then get a job as they get older in some tourist orientated business. So have a few Spanish/English phrase books with you. You can buy them quite cheaply in some of the local shops. There may be other books you'd like to get but this has been something that's been very well received by some of the street children I got to know.
- Pens, pencils crayons and/or notebooks you can buy these cheaply in the local stores - a follow on from the first idea.
- If you go for a meal don't eat it all and ask the restaurant to wrap the rest in tinfoil then give it to whatever street person you happen to come across that you feel might need it. I did this everytime and there never was a shortage of candidates!
- Naturally come up with your own ideas as well, there are a lot of options apart from cash. And by the way why not just cash? Because often they race off and buy ice cream or sweets, remember they are children. I'm suggesting perhaps something more meaningful and genuinely helpful is needed, at least be different, break the cycle of.... dinero, dinero, dinero!
One of the American missionary groups in Iquitos thought it a good idea to buy some of the street children new runners as they saw them going barefoot. Because I lived there for a period of time I got to know some of the street children, like Luois and Secondo, what they used to do they told me, was to sell the runners and use the money to go to the cinema and buy ice creams.
Of course they sold the runners for a fraction of what they were worth. Not surprisingly they actually preferred to go barefoot, they didn't see it as a problem, but of course the missionaries had their own values and agenda.
The idea is not to be the Pied Piper
But perhaps if you feel moved to give something, it may as well be something worthwhile.
Giving just money teaches the children to expect handouts and also re-enforces the idea of Gringos are rich, (and stupid). Don't get me wrong I also gave people money if I really thought they needed it. You need to work out a philosophy that works for you as in the main towns and cities it will be a daily occurrence.
Trails of the Spirit facilitates Sketching Workshop
Adventures in Peru and Ireland
