Currency in Peru
The Peruvian sol is the currency of Peru. It was called Nuevo Sol for a while (until 2015) and has been the official currency in Peru since 1991. Its ISO currency code is ” PEN ” and the abbreviation is S.
“Sol” is from Spanish and means “sun”. The name goes back to antiquity, namely from the Roman “solidus”, which means something like “solid”. The sun is an important symbol of the country and was also used for pre-sol currencies.
History of the Peruvian Currency
First as “Sol de Oro”, which was introduced in 1863, then as “Inti”, which was introduced much later and which had been the country’s official currency since February 1, 1985. Inti also means sun in Quechua, the language of the Inca, and was also the sun god of the Incas.
However, the Inti was highly inflationary. Already the Sol de Oro suffered from strong inflation, changing military dictatorships and many reforms that aimed for a middle path between capitalism and communism, but led nowhere. After more than a hundred years, Peru was forced to change currency.
The Inti did nothing to change this course, even if the new reforms of the democratically elected García government looked promising. In the first two years, wages, productivity and employment rose as more support was given to the agricultural sector and the government put in place programs to tackle rural poverty. However, the spending brought a new wave of inflation to hyperinflation.
In 1990 the so-called “Fujishock” came with President Alberto Fujimori Fujimori and consisted of momentous liberal reforms. Far-reaching privatizations and the introduction of the Nuevo Sol stabilized the economy. His reign was marked by an authoritarian style and scandals, but he was re-elected in 1995 and 2000. However, he had to flee into exile in 2001 and was arrested years later in Latin America.
The Sol has been stable since its inception. The exchange rate was one sol for 1,000,000 Inti. First came the coins on October 1st and banknotes on November 13th. In 2005 and 2007 new 1 céntimo and 5 céntimo coins were introduced.
In 1995 a banknote for 200 Nuevo Soles. 1 and 5 Céntimo are rarely used.
Exchange into the Peruvian currency
Travelers to Peru will have to ask themselves whether they would prefer to exchange euros for Sol in Germany before departure or in Peru first. It is usually cheaper to make the exchange in Peru first.
It is advisable to withdraw money in the local currency with a credit card at a larger bank, as this usually involves the lowest fees and the exchange rate is good.
The currency calculator can be used to determine what the current exchange rate between the euro and the sol is. A currency converter can also determine what a certain invoice amount would look like in Sol. Of course, the actual amount is usually lower due to fees.
