This report provides an overview of the foreign currency exchange rates utilized by the U.S. government for official international transactions. These rates are essential for U.S. government agencies to accurately convert foreign currency balances and transaction values into U.S. dollar equivalents. It’s important to understand that these are not real-time market exchange rates but rather specific rates established for government accounting and reporting purposes.
How Exchange Rates are Determined and Reported
The exchange rates detailed in these quarterly reports are collected from disbursing officers at each U.S. post. These officers report the rates at which the U.S. government can acquire foreign currencies on the last business day of the month preceding the report’s publication. This ensures a standardized rate for all U.S. government agencies when converting foreign currencies to U.S. dollars for accounting over the following quarter.
Amendments to Published Rates
To maintain accuracy and reflect significant market changes, the U.S. Treasury may issue amendments to these quarterly reports. If current exchange rates deviate by 10% or more from the published rates, an amendment will be issued. These amendments are presented as separate lines in the report with a new effective date. Crucially, amendments issued at the end of a month are applicable for transactions occurring during the remaining months of the quarter. For example, a rate amended on April 30th is valid for May and June transactions, in addition to the original rate published for March 31st which remains valid until April 29th. Amendments also account for the introduction of new foreign currencies into the system.
Exceptions to Standard Reporting Rates
It’s critical to note that there are exceptions to the rule of using these published exchange rates. These exceptions include:
- Collections and refunds: These are valued at rates specified by international agreements, which may differ from the standard reporting rates.
- Conversions between foreign currencies: When converting one foreign currency to another, these published USD exchange rates are not applicable.
- Foreign currencies sold for dollars: Transactions involving the sale of foreign currencies for U.S. dollars are also subject to different valuation rules.
- Other transactions affecting dollar appropriations: Certain other transaction types that impact dollar appropriations may also fall under exceptions.
For a comprehensive understanding of these exceptions, refer to Volume I Treasury Financial Manual 2-3200.
Proper Use of Government Exchange Rates
U.S. government agencies are mandated to use these reported exchange rates to ensure uniformity in financial reporting. Unless an exception applies, these rates should be used to convert foreign currency balances and reported transactions into U.S. dollar equivalents, both as of the report date and for the subsequent three months. However, it is vital to remember that these rates are not current market exchange rates and should not be used for valuing transactions that directly affect dollar appropriations. For those requiring exchange rate data from years prior to 2001, the GovInfo.gov website provides access to individual reports dating back to 1963 and consolidated reports going back to 1956.
Availability of Reports and Amendments
The standard quarterly reports are published as PDF documents. However, it’s important to note that these PDF reports do not include amended rates. Amended rates are exclusively available within the raw data formats of the reports. Therefore, for the most up-to-date and accurate exchange rate information, especially considering potential amendments, accessing the raw data is essential. No separate PDF reports are issued for amended rates.
