What is the yearly average currency exchange rate used for?

The yearly average currency exchange rate is used to convert a taxpayer’s foreign income from the local currency to U.S. dollars for reporting on a taxpayer’s U.S. individual income tax return. The yearly average currency exchange rates are listed below.

When are exchange rates published?

For details, please read our full Terms and Conditions. The annual average exchange rates are published by 12:30 ET on the last business day of the year. Exchange rates are expressed as 1 unit of the foreign currency converted into Canadian dollars.

What is an accounting rate of exchange?

The regulations of organizations give the executive head power to fix an accounting rate of exchange - that is, the rate of exchange at which non-dollar transactions will be converted to dollars in the accounts of the organization. This accounting rate is normally, though not necessarily, used for payroll purposes.