2020 Yearly Average Currency Exchange Rates

2020 Yearly Average Currency Exchange Rates

2020 IRS Yearly Average Currency Exchange Rates

 2020 Yearly Average Currency Exchange Rates: The Internal Revenue Service does not require taxpayers to use any specific exchange rate. The exhcange rate should be reasonable, as to not bring on any unnecessary scrutiny from the IRS. Each year, the IRS publishes the average exchange rate. Recently, they published the average exchange rate for the tax year 2020, which has been reproduced below.

As provided by the IRS:

Translating foreign currency into U.S. dollars

You must express the amounts you report on your U.S. tax return in U.S. dollars. Therefore, you must translate foreign currency into U.S. dollars if you receive income or pay expenses in a foreign currency. In general, use the exchange rate prevailing (i.e., the spot rate) when you receive, pay or accrue the item.

The only exception relates to some qualified business units (QBUs), which are generally allowed to use the currency of a foreign country. If you have a QBU with a functional currency that is not the U.S. dollar, make all income determinations in the QBU’s functional currency, and where appropriate, translate such income or loss at the appropriate exchange rate.

A taxpayer may also need to recognize foreign currency gain or loss on certain foreign currency transactions.  See section 988 of the Internal Revenue Code and the regulations thereunder.

Note: Payments of U.S. tax must be remitted to the U.S. Internal Revenue Service (IRS) in U.S. dollars.

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.

Note: The exchange rates referenced on this page do not apply when making payments of U.S. taxes to the IRS.  If the IRS receives U.S. tax payments in a foreign currency, the exchange rate used by the IRS to convert the foreign currency into U.S. dollars is based on the date the foreign currency is converted to U.S. dollars by the bank processing the payment, not the date the foreign currency payment is received by the IRS.

Yearly average currency exchange rates

For additional exchange rates not listed below, refer to the governmental and external resources listed on the Foreign Currency and Currency Exchange Rates page or any other posted exchange rate (that is used consistently). 

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.

IRS Exchange Table 2020

Country

Currency

2020

2019

2018

2017

2016

2015

Afghanistan

Afghani

76.651

77.579

73.598

71.086

70.645

63.653

Algeria

Dinar

126.741

119.402

117.409

115.876

114.431

104.883

Argentina

Peso

70.635

48.192

28.167

17.227

15.359

9.617

Australia

Dollar

1.452

1.439

1.340

1.358

1.400

1.345

Bahrain

Dinar

0.377

0.377

0.395

0.395

0.395

0.395

Brazil

Real

5.151

3.946

3.655

3.322

3.632

3.468

Canada

Dollar

1.341

1.327

1.297

1.350

1.379

1.329

Cayman Islands

Dollar

0.833

0.833

0.833

0.884

0.886

0.885

China

Yuan

6.900

6.910

6.620

7.030

6.910

6.489

Denmark

Krone

6.538

6.670

6.319

6.864

7.000

6.991

Egypt

Pound

15.813

16.809

17.809

18.586

10.462

8.044

Euro Zone

Euro

0.877

0.893

0.848

0.923

0.940

0.937

Hong Kong

Dollar

7.756

7.835

7.838

8.105

8.073

8.062

Hungary

Forint

307.766

290.707

270.441

285.583

293.083

290.638

Iceland

Krona

135.354

122.571

116.379

111.231

126.256

137.471

India

Rupee

74.102

70.394

68.422

67.809

69.956

66.768

Iraq

Dinar

1197.497

1191.254

1193.478

1241.677

1236.453

1231.234

Israel

New Shekel

3.438

3.563

3.596

3.746

3.997

4.052

Japan

Yen

106.725

109.008

110.424

116.667

113.138

125.911

Lebanon

Pound

1510.677

1510.290

1511.677

1593.969

1593.639

1588.880

Mexico

Peso

21.466

19.246

19.227

19.679

19.435

16.505

Morocco

Dirham

9.495

9.614

9.389

10.230

10.279

10.206

New Zealand

Dollar

1.540

1.518

1.447

1.465

1.494

1.492

Norway

Kroner

9.413

8.802

8.143

8.606

8.745

8.392

Qatar

Rial

3.641

3.641

3.642

3.850

3.791

3.790

Russia

Rouble

72.299

64.687

62.845

60.692

69.685

63.659

Saudi Arabia

Riyal

3.753

3.751

3.753

3.903

3.903

3.903

Singapore

Dollar

1.379

1.364

1.349

1.437

1.437

1.430

South Africa

 

Rand

16.458

14.448

13.258

13.859

15.319

13.281

South Korean

Won

1179.199

1165.697

1100.587

1178.585

1211.121

1179.128

Sweden

Krona

9.205

9.457

8.703

8.894

8.910

8.775

Switzerland

Franc

0.939

0.994

0.979

1.024

1.025

1.001

Taiwan

Dollar

29.460

30.898

30.152

31.683

33.586

33.089

Thailand

Baht

31.271

31.032

32.317

35.372

36.778

35.679

Tunisia

Dinar

2.836

2.925

2.71

2.513

2.237

2.044

Turkey

New Lira

7.025

5.685

4.849

3.794

3.146

2.834

United Arab Emirates

Dirham

3.673

3.673

3.673

3.821

3.821

3.821

United Kingdom

Pound

0.779

0.784

0.750

0.808

0.770

0.681

Venezuela

Bolivar (Fuerte)

236266.507

248486.041

131352.21

10.452

9.447

6.562

Golding & Golding: About Our International Tax Law Firm

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