Collection of Foreign Currency
Foreign currencies collected by entities will be delivered promptly into the custody of Accountable Officers for credit to accounts of the Treasury unless otherwise directed by the Secretary of the Treasury. The term "collections," for the purpose of these regulations, does not include foreign currencies acquired by the United States by purchase with dollars.
Examples of non-purchased currency acquisitions:
- Sales of Surplus Agriculture Commodities,
- Repayments of Loans to Foreign Governments & Private Enterprise,
- Contributions for Mutual Defense Assistance,
- Interest on Deposits,
- Lend-Lease and Surplus Property Settlement Agreements,
- Contributions to Cover Technical Cooperation Programs (Trust),
- Informational Media Programs, and
- Other Miscellaneous Programs.
The Accountable Officer will maintain records showing the collections, by source, and indicating the miscellaneous receipt accounts or other accounts in the Treasury to be credited with dollar proceeds from sale of the foreign currencies, and such further classifications as may be needed to indicate exchange which can be used only for restricted purposes. Accountable Officers will be advised by the collecting entities of the source of collections and any restrictions on the use of the foreign currencies in order that the foregoing records may be maintained.
The requirements prescribed in this Treasury Financial Manual chapter are applicable to all foreign currency acquired by the United States under guaranty provisions of Section 1011 of the United States Information and Educational Exchange Act of 1948, as amended (22 U.S.C. 1442), except that receipts of such foreign currency will be deposited in the foreign currency accounts of the U.S. Treasury.
Foreign currency which is held by Accountable Officers for account of the Treasury will be maintained only in depositaries designated by the Secretary of the Treasury. Foreign currency acquired by Accountable Officers by purchase or otherwise, which is not immediately disbursed but is held by such officers for their own account or for the account of any entity, will also be maintained only in depositaries designated by the Secretary of the Treasury. Unless otherwise directed by the Secretary, Accountable Officers are not required to have separate depositary accounts for foreign currency held for the account of the Treasury. Accountable Officers may carry foreign currency as cash outside depositaries only pursuant to authority granted in accordance with TFM Volume I, Part 4A, Chapter 3000.
Deposits in and withdrawals from foreign currency accounts maintained with depositaries in the name of the U.S. Treasury will be made only as directed by the Secretary.
Withdrawals from Treasury Accounts
Foreign currency will be withdrawn from accounts of the Treasury on the books of Accountable Officers or from the foreign currency accounts carried with depositaries in the name of the U.S. Treasury, only for the purpose of: (1) sale for dollars, or (2) transfer to entities for authorized purposes, without reimbursement to Treasury, as required by law. Such transfers will be made only by direction of the Secretary. An entity requiring foreign currency from Treasury will submit a request to the Secretary, indicating the amount of exchange required, in units of foreign currency, and the name and location of the Accountable Officer to receive the exchange. To the extent practicable and desirable, standing authorizations will be given for withdrawals from accounts of the Treasury.
Transfers Without Reimbursement
When foreign currency is to be obtained from Treasury without payment of dollars, the entity concerned will furnish written certification that the exchange may be used without reimbursement to Treasury, citing the relevant legal authority. In cases where international agreements or Office of Management and Budget allocations specify the programs for which foreign currency may be used, Treasury may transfer foreign currency to entities without requiring a certification.
Foreign currency so allocated is part of the entity's fund balances maintained by Treasury; therefore, for total accountability, the foreign currency should be included in the financial statements as part of the Fund Balances and Investment of the U.S. Government, with an explanatory footnote as to the use and availability of the currency, e.g., "not available for the payment of general obligations."
Public Law 89-677 authorizes unfunding, which allows a USDO to use foreign currency held by entities to meet the foreign currency needs of other entities. The unfunding process provides that, when entities receive foreign currencies that are not immediately needed for entity program expenditures, the Accountable Officers or authorized agents must unfund all affected program accounts before purchasing foreign currency commercially. As a result of this, each entity should record a receivable transaction to its GL, indicating that this amount represents the U.S. equivalent of foreign currency owed to the entity by Treasury.
The purpose of unfunding is twofold: It makes use of foreign currency not currently needed by the entity program, and it delays the expenditure of U.S. dollars to purchase foreign currency.
To unfund all affected accounts, an Accountable Officer must reclassify funds using the CARS Classification Transactions and Accountability (CTA) module. Through this process, the Accountable Officers:
- Credit entity program X7000 accounts,
- Unfund the accounts through Treasury’s account 20X7900 “Advances of Unfunded Foreign Currencies”,
- Use the funds for any U.S. Government expenditure, and
- Reimburse the program account when the foreign currency is required for the particular program intended.
If necessary, to reimburse the borrowed foreign currency, the Accountable Officers may purchase the foreign currency commercially with U.S. dollars. It is important to note that these foreign currencies credited to specific entity program accounts are initially acquired without the expenditure of U.S. dollars. They may be host-government contributions or loan repayments, for example.
- Translating Foreign Currencies to U.S. Dollar Equivalents
The procedures prescribed apply to all foreign currencies in which the United States has an interest, including receivables and country-owned "counterpart" funds, except currencies held under the dollar accountability of Accountable Officers. Foreign currencies held under dollar accountability will continue to be reported at the exchange rates prescribed for computing charges and credits to dollar receipt, appropriation, and fund accounts.
For reporting purposes, financial transactions and balances for which the basic value measure is foreign currency units will be translated to U.S. dollar equivalents at Treasury Reporting Rates (Sub-section 3235.20c). Unless otherwise provided, this rule applies to all types of transactions and balances including, for example, receipts and disbursements, accrued revenues and expenditures, authorizations, obligations, and receivables and payables. Refunds and similar reverse-transaction items shall be translated for reporting purposes at Treasury Reporting Rates prescribed for the period when the refunds occur without regard to the rates applied to the original transactions. Adjustments will be shown as necessary to record the effects of exchange rate fluctuations.
- Exchange Rates
Agreement rates are the rates provided in international agreements regarding the number of units of foreign currency corresponding to a given dollar amount for the purpose of effecting collections of currencies. To the extent that such rates are not otherwise available to Treasury, collecting entities will furnish the agreement rates promptly after the close of each month for purposes of translations.
Foreign currency collection transactions which are generated under international agreements will be translated at agreement rates unless otherwise determined by Treasury in consultation with the entities concerned. Refunds (return) of collections will also be translated at agreement rates if the related collections had been stated on that basis. (Adjustments will be shown as necessary to record the effects of differences between the agreement rates applicable to collections and the Treasury Reporting Rates applicable to balances).
Selling Rates on Withdrawals from Treasury Accounts
Concerning the sale of foreign currency held in accounts of the Treasury, the payment in dollars will be calculated at the rate of exchange that would otherwise be available to the United States for the acquisition of the foreign currency for its official disbursements, unless otherwise determined by Treasury in consultation with the entities concerned. When the rate that would otherwise be available to the United States is not readily ascertainable, entities must consult with Treasury (see Contacts). The dollar proceeds realized from the sale of foreign currency will be credited to the appropriate receipt, appropriation, or fund account on the books of Treasury. The dollar payment for foreign currency purchased will not be charged as appropriation expenditure until the foreign currency is disbursed.
In the case of foreign currencies sold for dollars, the sales transactions will be stated at the prevailing rate of exchange on the day of sale; that is, the dollar equivalents of reported sales will equal the dollar proceeds of the sales.
Treasury Reporting Rates
Treasury Reporting Rates are the rates at which most foreign currencies are to be translated under provisions of these regulations. In general, the rates will be published by Treasury on the first working day of each quarter and will represent the latest available Treasury prevailing rate in each country. The rates published at the beginning of a quarter will be applicable to closing balances of the preceding quarter, and to transactions and balances in the ensuing quarter, but not to balances at the close of such quarter. For example, the rates published on April 1 would be applicable to balances as of March 31, to transactions for April, May, and June, and to balances as of April 30 and May 31. The rates published on July 1 will govern the balances as of June 30.
Balances as of the close of a month and opening balances of the succeeding month must always agree. The published rates will be rounded to four digits past the decimal. For countries where fluctuations in Treasury prevailing rates are minimal, par or mean rates may be prescribed. Amendments to the quarterly rates will be published during the quarter to reflect significant changes in the quarterly data such as rate changes of 10 percent or more, the establishment of new currencies or demonetization of currencies. Treasury will monitor the fluctuation of currencies on the 15th and 30th calendar days of each month, respectively.
In the case of third-country conversions (the conversion of one foreign currency to another), the Treasury Reporting Rate will be applied to the payment side (the currency released) and the same dollar equivalent will be used for the currency acquired, thereby "washing" the dollar effect of the conversion transaction. (An adjustment will be shown as necessary to record the difference between the dollar equivalent so derived for the currency acquired and the dollar equivalent derived by translating the acquired currency at the Treasury Reporting Rate for the country of acquisition).
Uniform Exchange Rates
Translations of foreign currency units to U.S. dollar equivalents will be made at exchange rates which are uniform throughout the government with respect to specified categories of accounts or transactions, and with respect to given periods of time as specified in section 3235.20c.
- Loans and Certain Other Receivables
These procedures are applicable to loans and to other receivables with original maturities of one year or more (referred to as loans) which are:
- Denominated in currency units,
- Repayable exclusively in foreign currencies, and
- Repayable optionally in foreign currencies if the option rests with the debtor.
For loans denominated in currency units or otherwise fixed as to the number of currency units receivable, the current value should equal the fixed number of units receivable translated at the Treasury Reporting Rate prescribed for the date of the balance. For loans denominated in dollars under maintenance of value agreement, the current value should equal the outstanding dollar denominated amount multiplied by the ratio of the agreement rate to the Treasury Reporting Rate. Both rates will be as of the date of the balance.
In addition to current values, statements of loans outstanding will generally show historical values which relate the balances to the transactions which generated the loans. The differences between historical values and current values will be shown as valuation adjustments.
Reporting requirements for loans and certain other receivables are described in TFM Volume I, Part 2, Chapter 4500.
- Conversion of Foreign Currencies
FS Form 6911 "Foreign Currency Conversion and Transfer Voucher" will be used by entities for reporting the amount of foreign currencies (in Treasury X7000 accounts) available in excess and near excess currency countries for conversion to currencies of another country or to dollars. Where the supply of a non-restricted currency is great enough to more than meet U.S. requirements for the next two years (exclusive of requirements financed by restricted or reserved currencies), the currency is designated as excess by the Department of Treasury. Where the supply of currencies is above the immediate needs of the U.S. Government but not sufficient for the country to be declared excess, the currency is designated as near-excess by the Department of the Treasury. Conversions are limited to loan repayments under Title I of Public Law 480, under agreements stipulating two percent convertibility. Amounts available under these agreements, as well as any future agreements with convertibility provisions, should be submitted to Treasury on FS Form 6911 each time the balance of convertible currencies in any excess or near excess currency country reaches the U.S. equivalent of approximately $10,000. When the FS Form 6911 is received in Treasury and where the U.S. holdings of a particular currency warrant, Treasury will transmit the form to the disbursing officer for necessary action. The FS Form 6911 will be submitted in an original and one copy to Treasury (see Contacts). The forms should be numbered consecutively, prefixed by the entity code (e.g., 72-1, 72-2, and so forth).
- Foreign Currency Fund Account Symbols, Titles, and Descriptions
System of Foreign Currency Fund Accounts
All accounts are identified with applicable fund groups and classified within fund groups through the assignment of alphanumeric symbols, the last three-digits of which will be assigned within the blocks shown in the following table. For the purpose of this sub-section, these three-digits of the symbol will be referred to as the "main symbol." The symbol assigned to an account is determined after consideration of the government's relationship to the source of the receipt and the availability of the currency for expenditure or other purposes. An "X" immediately preceding the main symbol is used to identify foreign currency funds which are handled outside the regular dollar accounts of the government. A three-digit index number is assigned to identify the entity responsible for the account. This index number is included as the first three-digits of the symbol assigned to an account by Treasury. When one entity administers all or part of a program on behalf of another entity, the account will show both entity index numbers. The first three index numbers designate the performing entity, and the next three index numbers designate the authorizing or parent entity.
Foreign currency account symbols and titles will be assigned in accordance with guidance issued in TFM Volume I, Part 2, Chapter 1500: Description of Accounts Relating to Financial Operations.
Foreign Currency Fund Account Classifications
Account Classification From Through Sales Accounts 100 499 Program Accounts (United States Use Accounts)—Not requiring appropriations 500 599 Holding Accounts 600 699 Program Accounts (Country Use Accounts)—Not requiring appropriations 700 899 Advances of Unfunded Foreign Currencies (Sales Accounts) 900 ---
There are two general types of sales accounts as follows:
- Accounts established for non-restricted currencies which are available for sale to any government entity for official uses. The dollar expenditure equivalents of these currencies are charged to the appropriations and the resulting dollar proceeds are credited to receipt, appropriation, or fund accounts. These non-restricted currencies are also available for accommodation exchange and for sales to U.S. citizens and non-profit organizations for travel and other purposes in selected countries.
- Program accounts (requiring appropriations) established for restricted currencies which are available for use only in connection with particular programs. The dollar expenditure equivalents of these currencies are charged to the appropriations and the resulting dollar proceeds are credited to receipt, appropriation, or fund accounts. These program accounts are further identified by the assignment of a three-digit suffix (e.g., 191) to the main symbol to designate the entity authorized to use the currencies.
Program Accounts Not Requiring Appropriations
Program accounts not requiring appropriations are established for restricted currencies which are available for use only in connection with particular programs. These currencies are authorized to be expended without charge to dollar appropriations of entities. Within this group, symbols are assigned as follows: (1) main symbols from 500 through 599 are used primarily to designate United States use accounts, and (2) symbols from 700 through 899 are used primarily to distinguish country use accounts.
Holding accounts are used generally when the specific availability of currencies is not known at the point of collection. When the availability is determined, Treasury issues transfer authorizations moving the currencies from the holding account to one of the three categories of accounts described above.
Advances of Unfunded Foreign Currencies Account
This account (20X7900) is a special type sales account administered by Treasury for the purpose of making available all foreign currencies acquired, including currencies dedicated for specific programs (not requiring appropriations), by authorizing the use of these currencies for any program, subject to replacing such currencies when needed for the specific program.
- Preparation and Distribution of the X7000 File
The X7000 files will be used by disbursing officers to report their X7000 accountability and transactions.
Detailed instructions on the preparation and distribution of the X7000 file accountability are contained in Part IV of the Foreign Affairs Manual issued by the Department of State with the concurrence of the General Accounting Office and the Department of the Treasury.
Federal Financial Management Standards
- Functions and Activities
Budget Setup and Maintenance (FFM.010.010)
Establish and maintain budgetary resource reporting attributes; Receive agency spend and operating plan; Establish and maintain appropriated fund subdivisions before any of the appropriated funds are expended, according to OMB apportionments and agency spend and operating plan; Set up the funds control structure, levels, and accounting segments; Record the Treasury Accounting Fund Symbol (TAFS)/ Program/ Project/ Activity (PPA) information and organizational information for allotment and allocation; Includes setting up direct, reimbursable, revolving, contract, borrowing, financing, liquidating, advanced appropriation, anticipated collections, and nonexpenditure transfer funds; Includes recording appropriation warrants, apportionments, allotments, allowances, allocations, reapportionments, transfer allocations, continuing resolutions, rescissions, and reprogramming actions.
Fund Allocation and Control (FFM.010.020)
Implement controls designed to detect or prevent overspending for defined accounting segments; Execute statutory limitation control of funds restricting obligations and expenditures to amounts authorized by law; Execute administrative control of funds restricting obligation and expenditure from each account to the lower of the amount apportioned by OMB or the amount available for obligation and/or expenditure; Update funds control rules.
Budgetary Reporting (FFM.010.030)
Perform budgetary resource and budget execution analysis; Provide cumulative budgetary resource and budget execution reports to governing financial management authorities (e.g. OMB); Provide reports of impacts from unusual events, such as sequestration, rescission, and deferrals; Provide reports on Antideficiency Act violations; Includes generating SF132 and SF-133 and providing information needed for Budget Formulation; Verify required budgetary reports (e.g., SF-133) and general ledger account balances can be traced to appropriate supporting documentation.
General Ledger Setup and Maintenance (FFM.090.010)
Establish and maintain general ledger account classifications, categories, and subcategories consistent with the USSGL accounts; Establish and maintain proprietary and budgetary account attributes; Establish and maintain attributes to support agency financial performance and operations reporting.
General Ledger Posting (FFM.090.020)
Receive general ledger account transaction information provided by supporting financial management operations; Post general ledger proprietary, budgetary, and memorandum account transactions; Includes posting manual journal vouchers, adjustments to the general ledger, individual and aggregated transactions from subledgers, and transactions funded, obligated, or expended over multiple years to general ledger accounts that do not close.
Period End Closing (FFM.090.040)
Close and open accounting periods; Record period-end accounting entries; Includes month-end and year-end closings and closing non-fiduciary and fiduciary accounts.
Financial Performance and Operational Reporting (FFM.110.040)
Provide general ledger information for agency-specific financial reports; Verify required financial reports can be traced to general ledger account balances; Includes providing financial performance and operational information to agency program offices.
- Federal Financial Management System Requirements (FFMSR)
Defining GL Accounts and Attributes (FFMSR 1.1.1)
Provide GL account classifications (for example, budgetary, assets, liabilities, revenues, and expenses), account categories (for example, receivables), and account subcategories (for example, accounts receivable) consistent with the United States Standard General Ledger (USSGL) accounts defined in the Treasury Financial Manual (TFM).
Provide GL proprietary account attributes (for example, exchange/non-exchange indicator, federal/non-federal indicator, and program indicator) consistent with the USSGL account attributes defined in the TFM.
Provide GL budgetary account attributes (for example, Default Budget Enforcement Act Category, Apportionment Category B Program Code, Authority Type Code) consistent with the USSGL attributes defined in the TFM.
Posting GL Transactions (FFMSR 1.1.2)
Capture GL account transaction information provided by supporting financial management operations (for example, payments, receipts, liabilities, assets, and reimbursable/intragovernmentals) consistent with the USSGL account attributes, account transaction codes, account transaction categories, and account transaction subcategories defined in the TFM.
Post GL proprietary, budgetary, and memorandum account transactions consistent with USSGL account attributes, account transaction codes, account transaction categories, and account transaction subcategories as defined in the TFM.
Close non-fiduciary and fiduciary accounts consistent with USSGL account closing table rules as defined in the TFM.
Maintain ability to post transactions funded, obligated, or expended over multiple years to GL accounts that do not close (for example, undelivered orders–obligations, unpaid; delivered orders–obligations, unpaid; authority outlayed not yet disbursed) consistent with the TFM.
Providing GL Information (FFMSR 1.3.1)
Provide GL information for consolidated government-wide reporting as specified in the TFM and consistent with guidelines in the FASAB Handbook as well as OMB Circular No. A-136.
Provide GL information for agency-specific financial reports consistent with OMB Circular No. A-136 and FASAB Handbook.
Recording Budget Authority (FFMSR 2.1.1)
Provide budgetary resource reporting attributes (for example, Treasury Account Fund Symbol, expired, and unexpired) consistent with the budget execution activities as defined in OMB Circular No. A-11.
Determine appropriated fund subdivisions, apportionments, reapportionments, and allocations before any of the appropriated funds are expended consistent with the budget execution activities as defined in OMB Circular No. A-11.
Provide budgetary authority and resource data required to post GL transactions consistent with USSGL transaction codes, transaction categories (for example, funding) and transaction subcategories (for example, budgetary resources other than collections) as defined in the TFM.
Recording Budget Obligation and Outlays (FFMSR 2.1.2)
Execute administrative control of funds consistent with OMB Circular No. A-11 to restrict obligation and expenditure from each account to the lower of the amount apportioned by OMB or the amount available for obligation and/or expenditure.
Execute statutory limitation controls restricting obligations and expenditures to amounts authorized by law consistent with OMB Circular No. A-11.
Provide budget obligation and outlay data required to post GL transactions consistent with USSGL transaction codes, categories (for example, funding), and subcategories (for example, budgetary resources other than collections) as defined in the TFM.
Reporting Budgetary Resources and Budget Execution (FFMSR 2.1.3)
Provide budgetary resource and budget execution data as specified in the TFM to support the budget reporting activities defined in OMB Circular No. A-11, OMB Circular No. A-136, and the FASAB Handbook.
- Use Cases
- Treasury Financial Manual (TFM)
TFM Volume I Part 2 Chapter 3200; Foreign Currency Accounting and Reporting
- Contact Details
Direct inquiries concerning this section to:
Funds Management Division
Bureau of the Fiscal Service
PO Box 1328
Parkersburg, WV 26106-1328
Direct inquiries concerning the ATB and GTAS to:
Financial Reports and Advisory Division
Bureau of the Fiscal Service
PO Box 1328
Parkersburg, WV 26106-1328
Direct inquiries concerning USSGL reporting to:
Financial Reports and Advisory Division
Bureau of the Fiscal Service
PO Box 1328
Parkersburg, WV 26106-1328
This page was last updated on August 16, 2023.