Money question

Its really easy to use ATM machines. I would take some US dollars in bills of 1s and 5s for backup and are good for tips and have better exchange rates. Dont carry too much cash. I had about 200 us and someone went through my checked backpack at the aguas calientes right next to machu picchu. I paid for a locker and the staff still went through it

You're going to buy soles in Canada? I bet you get a bad exchange rate.

Lots of ATMs in Cusco, and they give you a choice of taking your money in soles or US dollars.

Get the Soles after arriving in Peru, and get rid of any leftover Soles before leaving Peru.

Cash US$ are useful in Peru if you intend to buy domestic airline tickets there. They can be used when paying for expensive tours (say, the Inca trail or jungle lodge). All other daily purchases are always made in Soles and you will lose money if you try paying in dollars. The street food vendor or cheap restaurant will think you are crazy if you offer dollars.

Using bank cards in Cusco is no problem, they have ATMs at least for Visa, Mastercard, Cirrus, Maestro systems.

Oh and don't bring any cash Canadian dollars....

The only place where they will be accepted are large moneychangers offices.

If you are going to downtown Lima at all, avoid changing too much cash at the airport. For changing cash or traveller checks into Soles, the best place in Lima are the money changers in the street at the right side of Gran Hotel Bolivar, at Plaza San Martin in Lima. They have been in business for at least 30 years, offer the best rates and are reasonably honest.

Thanks for all the suggestions.

Just a follow-up question. I'm happy to take out money from ATMS, but I'd like to bring some cash with me just in case. Should I just bring U.S. dollars then, since someone said the exchange rate for Soles would be expensive? I'm probably going to bring a small amount of cash with me and then just withdraw money as needed (in Soles). But I'd like some money for transit.

We're going straight to Cusco from Toronto, with brief stopovers in New York and Lima. So I'll need some money to possibly buy something small in the airport in Lima (food or something) and to pay for transportation from the airport to out hostel/hotel.

Will I be able to use U.S. dollars in the airport or for ground transportation? That brings me to another question, what's the best way to get from Cusco airport to the city centre (we're at Ninos Hotel)? I don't speak Spanish, which puts me at a bit of a disadvantage.

And klaush, I don't bring Canadian $ with me anywhere while travelling, not even U.S. border cities, because almost no one seems to accept it.

Yes you should bring US$ cash for easy exchange into the Soles you will initially need.

It is preferable to change a small amount, say 50 US$ per person in the airport, this is plenty to pay a taxi downtown and your first night in a hostel, dinner and breakfast. You really want to get some Soles immediately after arrival - you dont want to wave a 50 dollar bill at the friendly lady in the small bakery shop where you have breakfast the morning after your first night.

Taxi drivers at airports will speak a few words of English. Both airports have official taxi counters inside with English speaking staff.

Official taxis in Lima airport cost 45 Soles to any point in the center or Miraflores (for the whole car, not per person). I'm not aware of the price in Cusco but it must be less than in Lima because the Cusco airport is much closer to town.

It's sad that people dont accept Canadian dollars :-(

Just in case some european travellers read this: Euros are no problem, all the moneychangers accept them happily :-)

If you're not staying in Lima overnight (other than sitting in the airport waiting for the first flight to Cusco), you don't need to change more than $20 into soles.

Taxis are cheap in Cusco; the going rate is 2 soles anywhere within the city. From the airport don't pay more than 5 soles to the Ninos Hotel, though they'll try to get more from you. Start by offering three.

Any time you use US$ in a store, etc., you'll pay for it in a bad exchange rate. Best to find an ATM ASAP.

There's a huge problem with counterfeit bills and coins in Peru. The soles you pull from the ATM "should" be genuine, but in every commercial transaction examine your change before you leave. You'll see all the residents do it. Real bills feel like real bills and have a watermark or stripe when held up to the light. If something doesn't look right, don't be embarrassed to hand it back and say "otro." They're used to it.

Just a general tip on exchanging money, if possible, don’t exchange money at airports or border areas, the rates/commission are much worse there than actually in the town area. If you need to, only change as little as necessary at the border.
A classic case was going into Bolivia; the bus driver pulled up at the border area and advised us all to change money there, claiming rates in Copacabana were much worse. Needless to say, the driver was on a huge kickback and the rate in Copacabana was a lot better.
Generally though, if you have the right card, ATM’s are a much more economical way to get the local currency.