Economics

What is the Currency of Peru?

The official currency of Peru is the Peruvian sol.

History of the Peruvian Sol

The currency of Peru is known as the sol. The sol substituted the Peruvian inti in 1991. The word sol is derived from Latin (solidus) although the word also refers to sun in Spanish language. The currency is portioned into 100 parts called centimos (cents). After the currency introduction in 1991, the currency was commonly known as Nuevo until the Peruvian congress pioneered the renaming of the currency just to sol.

Coins

At the moment, the coins in circulation were produced and adopted in 1991 in denominations of 1, 5, 10; 20 and 50 centimos plus 1 sol. Retailers doing cash transactions are obliged to use ten centimos or to go up to nearest five. Electronic transactions and billings are processed in the same equivalence. An aluminum 5 centimo coin was minted and adopted in 2007. All the coins have a portrait representing the Coat of Arms of Peru with an image of central reserve bank of Peru at the obverse side of the coins. The denomination values are represented at the back side of each coin.

Banknotes

Peruvian bank notes were circulated in 1990 in denominations of 10, 20,50, and 100 soles. A bank note of 200 soles was later adopted in 1995. All the denominations of notes are uniform in size. A 10 soles note as introduced into circulation in 1991. The 10 soles note is green in colour with a portrait of Jose Quinone’s Gonzales.

The 20 soles note is orange with an image of Raul porras and a Huaca del dragon. The 50 soles note is brown and contains an image of Abraham valdelomar. The 100 soles note is blue with an image of Jorge Basadre and the national library of Peru. The 200 soles note, produced in 1995, is pink in colour while the one produced in 2011 is gray in colour.

Inflation and Value

Since its introduction, sol has maintained a low inflation rate of less than 1.5%, being ranked the lowest inflation in the entire Latin America. The currency has also reserved a strong stable exchange rate of 2.2 to 3.66 at each United States dollar.

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