Yearly Average Currency Exchange Rates

The Internal Revenue Service has no official exchange rate, but generally accepts any posted exchange rate that is used consistently.

Why No Official Exchange Rate?

The Internal Revenue Service (IRS) does not have an official exchange rate for currency conversions. They rely on the exchange rates provided by the taxpayer, who must consistently use the same exchange rate across their financial records.

How to Find Yearly Average Currency Exchange Rates

To find the yearly average currency exchange rates, you can follow these steps:

1. Identify the source of the exchange rate. The IRS will allow any exchange rate that is used consistently.
2. Average the rate for the entire year. To do this, multiply all the rates found for each month, then take the nth root of the product, where n represents the number of months.