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Which euro to dollar exchange rate do I use for the FBAR?

Updated

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Short answer

Use the Treasury Reporting Rate of Exchange for December 31 of the year you report, for every account, even if its peak was in another month.⁠Source 1⁠Source 2

Find each account's highest balance in euros first. Then convert that one figure with the year-end rate and round up to the next whole dollar.⁠Source 1

Treasury publishes rates as euros per one dollar, so you divide the euro amount by the rate.

Worked example

Mark's Rabobank savings account reached its highest balance of €27,450 in August. Assume Treasury's December 31 rate is 0.900 euros per dollar (an illustrative rate, not the published one).⁠Source 1⁠Source 2

Highest balance in the yearAugust statement
€27,450.00
Treasury rate for December 31euros per 1 U.S. dollar (illustrative)
0.900
€27,450.00 ÷ 0.900
$30,500.00
Value to report (rounded up)
$30,500

If the result has cents, round up: $15,265.12 is reported as $15,266.⁠Source 1

The rules behind the calculation

FinCEN asks for the Treasury rate for the last day of the calendar year. The IRS yearly average rate is for income tax and does not apply.⁠Source 1⁠Source 3

If Treasury publishes no rate for a currency, use another verifiable rate and keep a record of its source with your FBAR records.⁠Source 1

An account kept in U.S. dollars needs no conversion. A dollar account at a Dutch bank is still a foreign account.⁠Source 1⁠Source 4

A second example

Example

An account closed in March

Mark closed an ABN AMRO account in March after a peak of €4,000. He still uses the December 31 rate for that year, not the rate on the day it closed.⁠Source 1

Common mistake

Multiplying by the Treasury rate instead of dividing. Treasury quotes foreign currency per dollar, so €27,450 × 0.900 gives a figure that is far too low.⁠Source 2

More on this question

Where do I find the Treasury rate?

On Treasury's FiscalData site, under Treasury Reporting Rates of Exchange. Look up the euro with a record date of December 31 of your reporting year and keep a copy with your records.⁠Source 2

Do I convert each day's balance at that day's rate?

No. Find the peak in euros, then convert that single figure at the December 31 rate.⁠Source 1

Does the rate decide whether I pass $10,000?

Yes. You convert each account's peak at the year-end rate before adding them up, so a weak dollar on December 31 can lift a borderline total over $10,000.⁠Source 3

Related questions

Full rules and more examples: Maximum account values

Sources

Official sources used for this page.

  1. Source 1: FinCEN, Reporting Maximum Account Value (opens in a new tab)

    Maximum account value for cash and nonmonetary assets, account-by-account values and currency conversion, including another verifiable rate with its source.

    fincen.govChecked Back to text

  2. Source 2: U.S. Treasury, Treasury Reporting Rates of Exchange (opens in a new tab)

    Year-end exchange rates used for the FBAR.

    fiscaldata.treasury.govChecked Back to text

  3. Source 3: IRS, Internal Revenue Manual 4.26.16 — FBAR (opens in a new tab)

    Financial interests, signature authority, U.S. residency (including 6013(g)/(h) elections and treaties), family attribution, spousal filing, Form 114a parts and amended-FBAR identifiers.

    irs.govChecked Source updated Back to text

  4. Source 4: eCFR, 31 CFR § 1010.350 — Reports of foreign financial accounts (opens in a new tab)

    Who has a reportable financial interest in accounts, the rule for owners of record and the definition of signature authority.

    ecfr.govChecked Back to text