2025 FBAR Exchange Rates – Reporting Foreign Accounts

What is the FBAR Exchange Rate?

When filing the FBAR (Form FinCEN 114), you’re required to report the value of your foreign financial accounts in US dollars. Since most foreign accounts are maintained in non-US currencies, you’ll need to convert the account balances to US dollars.

The FBAR exchange rate is the rate used for this conversion and is typically the rate set by the US Department of the Treasury.

The Treasury Department publishes its official foreign exchange rates for this purpose, and using this standardized rate ensures that your FBAR filing is consistent with IRS and FinCEN requirements.

Which Exchange Rate Applies to the 2025 FBAR?

The 2025 FBAR reports foreign account activity from calendar year 2025, so the December 31, 2025, Treasury exchange rate must be used. This is true even if you file with the automatic FBAR extension to October 15, 2026.

All accounts for the year are converted using the same year-end rate.

2025 FBAR Exchange Rates

The Treasury Department has released the year-end exchange rate for the 2025 tax year. This rate must be used to convert foreign currency to US dollars when preparing your 2025 FBAR, due in 2026. Please refer to the table below:

Source: US Treasury Department

How to use the FBAR Exchange Rate?

When completing your FBAR, you’ll need to report the highest balance in each of your foreign financial accounts during the calendar year. To convert these balances to US dollars, follow these steps:

• Identify the highest balance: Review your account statements to find the maximum balance in the foreign currency for the year.

• Find the FBAR exchange rate: Check the Treasury’s Reporting Rates of Exchange website or use the above reference table for the applicable annual rate.

• Convert the balance: Multiply the highest foreign currency balance by the annual exchange rate to get the value in US dollars.

• Report on FinCEN Form 114: Enter the converted US dollar amount in the appropriate section of the FBAR form.

Concrete Example of Using the 2025 FBAR Exchange Rate

Suppose you are a US citizen living in Canada, and your highest balance in a Canadian bank account during 2025 was CAD 15,000. According to the 2025 Treasury year-end exchange rate, CAD 1 = USD 0.74 (example rate for illustration).

To report this account on your 2025 FBAR, you would calculate:

15,000 × 0.74 = $11,100

This is the amount you enter on FinCEN Form 114, not the CAD value. If you had multiple Canadian accounts, each account would be converted using the same Treasury rate before adding them together to determine whether your $10,000 FBAR threshold is exceeded.

FBAR Exchange Rate vs IRS Exchange Rates

When reporting foreign accounts and income, it’s important to know that the FBAR exchange rate and the IRS exchange rate are different, and each must be applied according to the rules.

For the 2025 FBAR, you must use the December 31, 2025 Treasury year-end exchange rate. This rate is applied consistently across all accounts in the same currency and is used to convert the highest account balance of the year into US dollars.

On the other hand, when reporting foreign income or assets on your US tax return (Form 1040 or Form 8938), you must use the exchange rates published or approved by the IRS.

The IRS allows you to use either the annual average rate provided by the IRS or the transaction-date rate for specific payments, depending on the type of income or asset being reported.

This means the converted balances on FBAR may not match the amounts on your US tax return because each form relies on a different official source for exchange rates. While this difference is normal, using the wrong rate on either form can cause errors or penalties.

Common FBAR Exchange Rate Mistakes

US expats often make errors when converting foreign account balances for FBAR, including:

• Inconsistent rates: Applying different rates for accounts in the same currency.

• Reporting averages instead of maximums: FBAR requires the highest balance of the year.

• Omitting joint or business accounts: All accounts you own or have authority over count toward the $10,000 threshold.

• Mixing FBAR and IRS rates: FBAR uses Treasury rates; IRS forms require IRS-approved exchange rates.

Avoiding these mistakes ensures your 2025 FBAR is accurate and compliant.