The best way to withdraw money in Peru is from ATMs using Debit Cards. Once the money is withdrawn, the funds are immediately deducted from your bank account and (unlike Credit Cards) no interest is charged so long as you have sufficient funds in your account. The exchange rates are generally good. You may find, however, that like credit cards you may be limited to the amount that you can withdraw each day. If your card is damaged, you forget your pin (like I did) or have your card stolen, then you have a problem unless you have a contingency.

It is worth carrying with you a number of mint condition US dollars. Really make sure they are in good condition as even the smallest of bends or tears will make exchange virtually impossible. If you are not under pressure to have your US dollars changed, then it is comical to watch the extreme lengths the vendor goes through to ensure the notes are legitimate.

Traveller’s cheques are a bit of a headache to cash, are expensive and not widely recognised. If you do take TCs then by far the best and most easily changed are American Express. Remember to keep a record of all the cheque numbers and the original bill of sale in a safe place. You will find that the exchange rate for TC’s is 1.5% to 2% lower than for cash 

Changing money on the street is perfectly legal in Peru.  Although the exchange rate is generally not bad, it is not recommended, unless absolutely necessary.

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