This report details the exchange rates used by the U.S. government for reporting foreign currency transactions, as mandated by Section 613 of Public Law 87-195. These rates ensure consistency across all government agencies when reporting foreign currency amounts and their US dollar equivalents. They apply to a wide range of financial activities, including receipts, disbursements, obligations, and receivables, in any foreign currency where the U.S. government has financial interests.
Certain exceptions exist where specific rates are dictated by international agreements or the nature of the transaction, such as currency conversions or sales. Detailed guidance on these exceptions can be found in the Treasury Financial Manual.
The published rates represent the rates at which the U.S. government could acquire foreign currencies for official spending at the end of the month preceding the report’s publication. These rates are established for each foreign currency and are used for reporting purposes for the following three months.
The Treasury Department will issue amendments if actual exchange rates fluctuate by 10% or more from the published rates. These amendments will include a new effective date and will be incorporated into the report as a separate line item for the affected currency. This ensures that agencies can accurately report transactions using the most up-to-date applicable rate. For instance, a rate amended on April 30th will have two entries: the original March 31st rate and the amended April 30th rate, applicable for May and June. Amendments also cover newly established foreign currencies.
While crucial for government reporting, it’s important to understand that these rates are not real-time market rates. Therefore, they should not be used for valuing transactions that impact dollar appropriations. Their purpose is solely for consistent financial reporting across government agencies.
