# Foreign Currency Exchange Rates



## diharv (Jan 1, 2014)

I have a question for you all out there. I know that when filing FBARs for a particular year, you use that years yearly average exchange rate for converting foreign currency into US dollars. It would understandibly be a very large hassle to find out the actual spot rate for every maximum balance for multiple accounts.
However , for Part V of the 8854 it calls for tabulating your net worth in US dollars as of the expatriation date in my case. Do I use the yearly average exchange rate or do I use the actual rate for that day in this case to convert all my assets into US dollars ? The day after I left the consulate I bought a newspaper and kept the business section that had the previous days exchange rate so I do know it for that day . Any thoughts ?
Thank you.


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## BBCWatcher (Dec 28, 2012)

You may take either approach. It only has to be a reasonable, defensible approach for determining a U.S. dollar value. The Wall Street Journal's (or Financial Times's) published exchange rate on a particular day when the valuation should occur is a reasonable approach.


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## jbr439 (Nov 17, 2013)

diharv said:


> I have a question for you all out there. I know that when filing FBARs for a particular year, you use that years yearly average exchange rate for converting foreign currency into US dollars.
> ...


I believe that for FBARs you use the Treasury Department's published exchange rates which indicate the year end rate, not the yearly average rate. Same deal for form 8938.


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