I have received interest on foreign banks every month for the last year. Should I use today's exchange rate or the last day of the year or any approximate rate?

[JohnR1 · Accepted solution]

The IRS does not require use of a certain specified exchange rate to convert your income into U.S. Dollars - the IRS has no official exchange rate. Generally, it accepts any posted exchange rate that is used consistently. the IRS recommends using the exchange rate prevailing when you receive, pay, or accrue the item. 

As the interest you received accrued over the course of the year, a reasonable exchange rate to use would be an annual average rate for the 2016 calendar year.

The IRS has a useful chart of Yearly Average Exchange Rates for Converting Foreign Currencies into U.S. Dollars, for many countries - please see the following link:

https://www.irs.gov/individuals/international-taxpayers/yearly-average-currency-exchange-rates