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Peru - best way to handle money? Bring a lot of cash for exchange or ATMs?

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Hi, what is the best way to get/use money in Peru?

I'm wary of bringing a lot of cash with me, since I'll be staying in hostels and don't want to be carrying $1000+ in USD on my person in case anything gets stolen. I realize most places (i.e. hostels, taxis) are cash only, so I'm not sure what the best way to safely bring and use my money would be.

Would you recommend I bring a few hundred and then use ATM's the rest of the time there? I have Bank of America, so am hoping to find some Scotiabanks (internationally linked to BoA) around Peru to avoid all the added fees.

I have to pay the rest of my balance for a Llamapath tour, so am considering paying this via PayPal prior to the trip, unless anyone thinks I should wait until I get there?

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