2025 FBAR Exchange Rates for US Expats

2025 FBAR Exchange Rate at a Glance

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.

Key distinction: the Treasury rate is a year-end snapshot taken on December 31, while IRS rates are typically annual averages. This means the converted values on your FBAR may differ from those on your Form 1040, and that is expected.

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 by Country

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: Divide 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, USD 1 = CAD 1.369 (example rate for illustration).

You would report $10,957 on FinCEN Form 114 for that account, 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: Key Differences

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.

Because FBAR and your tax return use different rate sources and measure different things, the converted figures will rarely match exactly. This is not an error — it is expected and normal.

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.