The U.S. government uses specific exchange rates, known as Rates Of Money, when acquiring foreign currencies for official expenditures. These rates, crucial for financial reporting and budgeting, are published quarterly and reflect the exchange rate on the last business day of the month prior to the report’s publication. This article will delve into the intricacies of these rates of money, including amendments, exceptions, and where to find historical data.
How Rates of Money are Determined and Amended
The rates of money are determined by disbursing officers at each U.S. government post and reported to the Treasury. These rates are then compiled and published in a quarterly report. Critically, if the actual current exchange rates deviate significantly (10% or more) from the published rates of money, the Treasury issues amendments.
These amendments are crucial for maintaining accurate financial reporting. An amended rate appears as a separate line in the report with a new effective date. For instance, a rate amended on April 30th would have two entries: the original March 31st rate and the April 30th amended rate, applicable for May and June transactions. This system ensures that financial transactions are recorded using the most accurate rates of money available. Amendments also reflect the introduction of new foreign currencies. This data, including amendments, is available from March 2021 onwards.
Exceptions and Usage Guidelines for Rates of Money
While generally applicable, there are exceptions to using these published rates of money. Specific rates dictated by international agreements govern collections and refunds. Furthermore, conversions between foreign currencies, sales of foreign currencies for dollars, and other transactions impacting dollar appropriations are also excluded. Detailed information regarding these exceptions can be found in Volume I Treasury Financial Manual 2-3200.
To ensure consistency, all U.S. government agencies are required to utilize these published rates of money for converting foreign currency balances and transactions into U.S. dollar equivalents. This applies to the report date and the subsequent three months. However, it’s crucial to understand that these are not current exchange rates and should not be used for valuing transactions affecting dollar appropriations. They are specifically for reporting purposes.
For historical exchange rate data prior to 2001, GovInfo.gov provides access to individual annual reports dating back to 1963 and a consolidated report going back to 1956. These resources offer valuable insights into historical trends in rates of money.
Accessing Current and Historical Exchange Rate Information
The published quarterly reports, in PDF format, do not include the amended rates. Amended rates are available only within the raw data. No separate PDF reports are issued for these amendments. This ensures that users accessing the data understand they are viewing the most up-to-date rates of money.
Understanding these rates of money is critical for anyone involved in U.S. government financial reporting involving foreign currencies. While the published rates provide a baseline, staying informed about amendments and exceptions ensures accuracy and compliance. Consulting the resources mentioned, including the Treasury Financial Manual and GovInfo.gov, offers a comprehensive understanding of these crucial financial tools.
