This report details the foreign currency exchange rates mandated under Section 613 of Public Law 87-195, enacted on September 4, 1961. This legislation grants the Secretary of the Treasury the exclusive authority to set exchange rates for all foreign currencies reported by U.S. government agencies.
The primary goal of this report is to ensure consistency across all government agency reports dealing with foreign currencies. By providing standardized exchange rates, the Treasury aims to harmonize the reporting of foreign currency amounts and their U.S. dollar equivalents. This standardization is crucial for accurate financial oversight and reporting within the U.S. government.
This report encompasses all foreign currencies relevant to U.S. government financial activities. This includes a wide range of transactions and financial items, such as:
- Receipts and disbursements in foreign currencies
- Accrued revenues and expenditures
- Authorizations and obligations
- Receivables and payables
- Refunds and similar reverse transactions
However, there are specific exceptions where these reporting rates do not apply. These exceptions include:
- Collections and refunds valued at rates defined by international agreements.
- Conversions between different foreign currencies.
- Sales of foreign currencies for U.S. dollars.
- Transactions impacting dollar appropriations (further details can be found in Volume I Treasury Financial Manual 2-3200).
The exchange rates presented in this quarterly report are the rates at which the U.S. government can procure foreign currencies for official expenditures. These rates are reported by disbursing officers at each post and are based on the last business day of the month preceding the report’s publication.
To account for currency market fluctuations, the Treasury will issue amendments to this quarterly report if current exchange rates deviate by 10% or more from the published rates. Since April 2021, amendments are shown as separate lines in the report with new effective dates. Amendments issued at the end of a month are applicable for reporting transactions in the remaining month(s) of the quarter.
For example, if a currency rate is amended on April 30th, the report will show two entries: one for the original rate from March 31st, and a second entry with the amended rate effective April 30th. This amended rate will be used for May and June transactions reporting. Amendments are also used to introduce exchange rates for newly established foreign currencies.
To maintain uniformity in financial reporting, all U.S. government agencies are required to use these published exchange rates (with the exceptions noted) to convert foreign currency balances and transactions into U.S. dollar equivalents. These rates are to be used from the date of this report for the subsequent three-month period.
It is important to note that the exchange rates in this report are not real-time or current market exchange rates. Therefore, they should not be used for valuing transactions that directly affect U.S. dollar appropriations. Their sole purpose is for standardized foreign currency reporting within the U.S. government.
