Translating foreign currency into U.S. dollars You must express the amounts you report on your U.S. tax return in U.S. dollars. Therefore, you must translate foreign currency into U.S. dollars if you receive income or pay expenses in a foreign currency. In general, use the exchange rate prevailing (i.e., the spot rate) when you receive, pay or accrue the item. The only exception relates to some qualified business units (QBUs), which are generally allowed to use the currency of a foreign country. If you have a QBU with a functional currency that is not the U.S. dollar, make all income determinations in the QBU's functional currency, and where appropriate, translate such income or loss at the appropriate exchange rate. A taxpayer may also need to recognize foreign currency gain or loss on certain foreign currency transactions. See section 988 of the Internal Revenue Code and the regulations thereunder. Note: Payments of U.S. tax must be remitted to the U.S. Internal Revenue Service (IRS) in U.S. dollars. Currency exchange rates The Internal Revenue Service has no official exchange rate. Generally, it accepts any posted exchange rate that is used consistently. When valuing currency of a foreign country that uses multiple exchange rates, use the rate that applies to your specific facts and circumstances. Note: The exchange rates referenced on this page do not apply when making payments of U.S. taxes to the IRS. If the IRS receives U.S. tax payments in a foreign currency, the exchange rate used by the IRS to convert the foreign currency into U.S. dollars is based on the date the foreign currency is converted to U.S. dollars by the bank processing the payment, not the date the foreign currency payment is received by the IRS. Yearly average currency exchange rates For additional exchange rates not listed below, refer to the governmental and external resources listed on the Foreign Currency and Currency Exchange Rates page or any other posted exchange rate (that is used consistently). To convert from foreign currency to U.S. dollars, divide the foreign currency amount by the applicable yearly average exchange rate in the table below. To convert from U.S. dollars to foreign currency, multiply the U.S. dollar amount by the applicable yearly average exchange rate in the table below. Yearly Average Exchange Rates for Converting Foreign Currencies into U.S. Dollars Country Currency 2020 2019 2018 2017 2016 2015 Afghanistan Afghani 76.651 77.579 73.598 71.086 70.645 63.653 Algeria Dinar 126.741 119.402 117.409 115.876 114.431 104.883 Argentina Peso 70.635 48.192 28.167 17.227 15.359 9.617 Australia Dollar 1.452 1.439 1.340 1.358 1.400 1.345 Bahrain Dinar 0.377 0.377 0.395 0.395 0.395 0.395 Brazil Real 5.151 3.946 3.655 3.322 3.632 3.468 Canada Dollar 1.341 1.327 1.297 1.350 1.379 1.329 Cayman Islands Dollar 0.833 0.833 0.833 0.884 0.886 0.885 China Yuan 6.900 6.910 6.620 7.030 6.910 6.489 Denmark Krone 6.538 6.670 6.319 6.864 7.000 6.991 Egypt Pound 15.813 16.809 17.809 18.586 10.462 8.044 Euro Zone Euro 0.877 0.893 0.848 0.923 0.940 0.937 Hong Kong Dollar 7.756 7.835 7.838 8.105 8.073 8.062 Hungary Forint 307.766 290.707 270.441 285.583 293.083 290.638 Iceland Krona 135.354 122.571 116.379 111.231 126.256 137.471 India Rupee 74.102 70.394 68.422 67.809 69.956 66.768 Iraq Dinar 1197.497 1191.254 1193.478 1241.677 1236.453 1231.234 Israel New Shekel 3.438 3.563 3.596 3.746 3.997 4.052 Japan Yen 106.725 109.008 110.424 116.667 113.138 125.911 Lebanon Pound 1510.677 1510.290 1511.677 1593.969 1593.639 1588.880 Mexico Peso 21.466 19.246 19.227 19.679 19.435 16.505 Morocco Dirham 9.495 9.614 9.389 10.230 10.279 10.206 New Zealand Dollar 1.540 1.518 1.447 1.465 1.494 1.492 Norway Kroner 9.413 8.802 8.143 8.606 8.745 8.392 Qatar Rial 3.641 3.641 3.642 3.850 3.791 3.790 Russia Rouble 72.299 64.687 62.845 60.692 69.685 63.659 Saudi Arabia Riyal 3.753 3.751 3.753 3.903 3.903 3.903 Singapore Dollar 1.379 1.364 1.349 1.437 1.437 1.430 South Africa Rand 16.458 14.448 13.258 13.859 15.319 13.281 South Korean Won 1179.199 1165.697 1100.587 1178.585 1211.121 1179.128 Sweden Krona 9.205 9.457 8.703 8.894 8.910 8.775 Switzerland Franc 0.939 0.994 0.979 1.024 1.025 1.001 Taiwan Dollar 29.460 30.898 30.152 31.683 33.586 33.089 Thailand Baht 31.271 31.032 32.317 35.372 36.778 35.679 Tunisia Dinar 2.836 2.925 2.71 2.513 2.237 2.044 Turkey New Lira 7.025 5.685 4.849 3.794 3.146 2.834 United Arab Emirates Dirham 3.673 3.673 3.673 3.821 3.821 3.821 United Kingdom Pound 0.779 0.784 0.750 0.808 0.770 0.681 Venezuela Bolivar (Fuerte) 236266.507 248486.041 131352.21 10.452 9.447 6.562 References/Related Topics Foreign Currency and Currency Exchange Rates Small Business/Self-Employed Industries Professions International Taxpayers Online Tools & Updates International Taxpayers Videos International Taxpayers Press Releases International Taxpayers Interactive Tools