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It is best to have local currency; however, most restaurants, hotels and other service providers readily accept US dollars as long as they don’t have any rips. They will generally give you change in local currency. The local currency is the Peruvian Soles (PEN). It is better to use local currency in markets, as you will have smaller denominations to purchase and tip with and don’t need to worry about your currency looking pristine (ripped Soles are common and readily accepted).

See the Currency Converter for exchange rates

There are no banks in Pisac, they are in Cusco, mainly on the main street (Avenida del Sol). It is best to change money at official money exchanges “casa de cambio” rather than on the street, or the bank for a better exchange rate. There are many places to change your money (dollars) into soles in Pisac. In Cusco you will get a slightly better exchange rate, and there are seval options near the main plaza. Please note that dollars need to be in perfect condition to be accepted; ripped or worn bills will not be exchanged, and if accepted, it will be for a much lower exchange rate. You can also change Euros or English pounds although sometimes the rates are not very good. Traveller’s checks are more difficult to exchange, and not recommendable.

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