Yearly Average Currency Exchange Rates

Translating foreign currency into U.S. dollars

You must translate foreign currency into U.S. dollars if you receive income or pay expenses in a foreign currency. The only exception relates to some qualified business units (QBUs) which are generally allowed to use the currency of a foreign country.

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. For example, if you have a single transaction such as the sale of a business that occurred on a single day, use the exchange rate for that day. However, if you receive income evenly throughout the tax year, you may translate the foreign currency to U.S. dollars using the yearly average currency exchange rate for the tax year.

Yearly average currency exchange rates

The table below includes yearly average exchange rates for prior years. It was revised on November 1, 2011, to reflect the typical cash exchange rates for the listed countries and years. For additional exchange rates, refer to Foreign Currency and Currency Exchange Rates.

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	2012	2011	2010	2009	2008	2007
Afghanistan	Afghani	53.130	48.817	48.409	53.040	50.417	52.433
Algeria	Dinar	81.301	76.525	78.471	77.110	68.437	73.405
Argentina	Peso	4.738	4.299	4.077	3.888	3.298	3.247
Australia	Dollar	1.005	1.008	1.134	1.332	1.245	1.243
Bahrain	Dinar	0.395	0.394	0.394	0.394	0.394	0.394
Brazil	Real	2.035	1.742	1.838	2.008	1.914	2.030
Canada	Dollar	1.040	1.029	1.072	1.187	1.109	1.117
Cayman Islands	Dollar	0.872	0.868	0.868	0.856	0.867	0.867
China	Yuan	6.573	6.732	7.050	7.115	7.241	7.922
Denmark	Krone	6.025	5.571	5.847	5.570	5.299	5.663
Egypt	Pound	6.348	6.211	5.908	5.825	5.715	5.950
Euro Zone	Euro	0.809	0.748	0.785	0.748	0.711	0.760
Hong Kong	Dollar	8.068	8.096	8.080	8.062	8.091	8.115
Hungary	Forint	234.421	209.338	216.583	210.463	179.603	191.379
Iceland	Krona	130.282	120.906	129.851	130.043	92.133	66.799
India	Rupee	55.911	49.124	47.774	50.804	45.567	43.011
Iraq	Dinar	1224.581	1230.715	1230.020	1228.033	1262.118	1343.336
Israel	New Shekel	4.014	3.724	3.887	4.089	3.735	4.279
Japan	Yen	83.008	82.931	91.342	97.361	107.605	122.527
Lebanon	Pound	1583.096	1581.575	1579.773	1585.339	1587.847	1598.145
Mexico	Peso	13.695	12.943	13.151	14.058	11.612	11.374
Morocco	Dirham	9.064	8.478	8.829	8.474	8.115	8.590
New Zealand	Dollar	1.285	1.316	1.444	1.663	1.482	1.416
Norway	Kroner	6.056	5.835	6.291	6.550	5.873	6.099
Qatar	Rial	3.798	3.791	3.793	3.792	3.794	3.797
Russia	Rouble	32.407	30.626	31.651	33.088	25.865	26.603
Saudi Arabia	Riyal	3.902	3.902	3.906	3.904	3.907	3.899
Singapore	Dollar	1.300	1.308	1.418	1.513	1.472	1.567
South Africa	Rand	8.553	7.562	7.638	8.782	8.606	7.352
South Korean	Won	1175.380	1153.728	1206.268	1330.240	1146.949	972.681
Sweden	Krona	7.048	6.755	7.498	7.958	6.857	7.030
Switzerland	Franc	0.976	0.923	1.085	1.129	1.126	1.248
Taiwan	Dollar	30.849	30.693	32.814	34.389	32.818	34.198
Thailand	Baht	32.456	31.893	33.227	35.953	34.603	33.831
Tunisia	Dinar	1.629	1.469	1.502	1.410	1.299	1.346
Turkey	New Lira	1.874	1.748	1.569	1.619	1.358	1.364
United Arab Emirates	Dirham	3.821	3.821	3.821	3.821	3.821	3.820
United Kingdom	Pound	0.656	0.649	0.673	0.667	0.567	0.520
Venezuela	Bolivar (Fuerte)	4.473	4.474	4.384	2.238	2.239	2234.842

References/Related Topics

Page Last Reviewed or Updated: 30-Apr-2013