Foreign currency accounts for YNAB.
Manage multiple currency accounts in a single budget in You Need A Budget.
This is based on an approach that I've been using manually for several years and found to work very well for our family budget which crosses three different currencies and involves a lot of foreign transactions and transfers (after trying a few other ways first).
Table of contents
- Foreign currency accounts for YNAB.
- Table of contents
- How to use
- Additional notes
Some notable features of this approach that may set it apart from other solutions (such using separate budgets for different currencies, or the YNAB Multi-Currency app):
All your accounts, both local and foreign currency, are in a single budget so you can see the state of all your finances at a glance.
Auto-import, manual import, and reconciliation for foreign currency accounts works normally, in the original foreign currency.
Reports and net worth will always be shown in your local currency, with all foreign amounts converted at an exchange rate accurate to within 24 hours.
Budget categories are in your local currency, and it's no problem to mix local and foreign currency transactions in the same budget category.
Handles split transactions.
Foreign currency balances are automatically adjusted as the currency fluctuates, at an exchange rate accurate to within 24 hours.
Your original transactions left are untouched.
Uses historical exchange rates for transactions in the past.
The approach boils down to:
Transactions in foreign currency accounts are kept in their original foreign currencies.
For each foreign currency in the budget, there is a "virtual" difference account that holds the difference between your total holdings in the foreign currency and your those holdings converted to your local currency.
For each transaction in a foreign currency account, a corresponding transaction is created in the difference account with the difference between the foreign amount and the amount converted to your local currency (at the exchange rate of the day before the transaction's date).
Adjustment transactions are created daily in the difference account to account for fluctuating exchange rates, with a special budget category used as a "buffer" for these fluctuations.
For example, if
- your local currency is U.S. Dollars
- you hold €100.00, and
- €1.00 = $1.10, then
the Euro difference account would hold $10.00, since
- €100.00 * $1.10/€1.00 = $110
- the difference ($110 - $100) is $10.
This approach assumes you have a "home" currency that you use for your budgeting. It's probably the currency where you live most of the time and do the majority of your spending, but it could be the currency that you earn most of your money in. If you split your time evenly between countries or are truly global, you may not have a single "home" in this sense, in which case you may be better off maintaining separate budgets for your different home currencies.
This tool doesn't help you out if you're spending in a foreign currency using a local currency account (e.g. using a U.S. credit card while visiting Europe), since there's no way to know what rate your financial institution will use for transactions.
Probably not very useful for hyper-inflating currencies, but I'm not sure how you'd budget effectively with such a currency anyway. Make a big exchange rate adjustment buffer category, I guess. But you're probably best off immediately spending any money on tangible goods or converting it to something that holds value, since otherwise all the value will just inflate away anyway.
How to use
Important note: currently this preview is just a command-line tool with basic features that you can run manually. However, I intend to flesh this out into a web application, if folks seem interested.
These instructions assume that you are familiar with using your operating system's command-line terminal.
There's some initial work required to set up your accounts the way this tool needs (which, unfortunately, cannot currently be automated due to YNAB API limitations), but once this has been done once it all keeps working without much further manual intervention required.
This tool uses special "tags" to identify a foreign account's currency. For each foreign currency account:
Left-click the account
Put the three-letter currency code in angle brackets anywhere in the account's nickname or notes. For example, a U.S. Dollar account would have
<USD>, and a Euro account would have
<EUR>. Here is a list of the supported currencies and their three-letter codes.
You don't need to add any currency tag to your local currency accounts (although it won't hurt anything if you do).
In addition, you must create one "virtual" difference account for each foreign currency you use in your budget accounts (even if you have more than one account in that currency):
Click the Add Account button
In the Add Account dialog, enter:
- Account type:: Checking
- Nickname: must contain a "tag" with the three-letter currency code
followed by a space and
DIFFERENCE, all in angle brackets (e.g.
<EUR DIFFERENCE>for Euros)
- Current balance:
Click Next and then Done.
If you have foreign currency credit accounts, you must also create a
separate difference account for those (so that YNAB's special credit handling
applies to the converted amounts too). Follow the same instructions as above,
but choose account type Credit Card instead. You should add additional
text to the nickname before or after the "tag" to differentiate it from the
debit difference account, just make sure the extra text is outside the angle
brackets (for example,
Credit <EUR DIFFERENCE>).
If you have foreign currency tracking accounts, you must also create a
separate difference account for those (so that your worth in each is correct).
Follow the same instructions as above, but choose account type Asset (e.g.
Investment) instead. You can should additional text to the nickname before
or after the "tag" to differentiate it from the budget difference account, just
make sure the extra text is outside the angle brackets (for example,
Tracking <EUR DIFFERENCE>).
Finally, create a budget category for foreign currency balance adjustments due
to exchange rate fluctuations. You can name this anything you want, for
Foreign Currency Adjustments. You will need to budget enough in this
category to cover likely fluctuations in exchange rates given the amount of
your foreign currency holdings. You can also create separate budget categories
for different currencies if you wish.
Download the appropriate binary executable for your platform:
Platform Download link Linux (x86 64-bit) fca4ynab-0.1.10-x86_64-linux macOS fca4ynab-0.1.10-x86_64-darwin Windows (64-bit) fca4ynab-0.1.10-x86_64-mingw64.exe
On Linux and macOS, give the downloaded file execute permissions:
$ chmod a+x /path/to/fca4ynab-0.1.10-*
Rename the binary to
fca4ynab.exeon Windows) and move it somewhere in your system PATH, if desired.
Determine your budget's ID. You can get this by opening your budget in YNAB and then looking at the URL in the location bar. The budget ID is the string of random letters, numbers, and dashes that comes between
/budget(e.g. if the URL is
https://app.youneedabudget.com/5bcbe6cb-0a20-41dd-bf4d-c8ab34dd99d4/budgetthen the budget ID is
5bcbe6cb-0a20-41dd-bf4d-c8ab34dd99d4). Make note of the ID value for later.
Generate a YNAB Personal Access Token by following these instructions. Make note of the token value for later.
Get a free Currency Converter API token by clicking the Get Your Free API Key button on this page. Make note of the token value for later.
Run the tool
Run the following command, with the values in angle brackets (such as
<YOUR-BUDGET-ID>) substituted using the token and ID values you noted above:
fca4ynab \ --budget-id="<YOUR-BUDGET-ID>" \ --currency-converter-api-key="<CURRENCY-CONVERTER-API-KEY>" \ --ynab-access-token="<YNAB-PERSONAL-ACCESS-TOKEN>"`
This will output which foreign currency accounts were detected, and show you any transactions that will be created, but will not actually make any changes.
By default, this tool will only process transactions starting from thirty days
prior to the date you first ran the tool. If you prefer a different start
date, use the
--start-date=<YYYY-MM-DD> argument to override it. Note that
you can only set this the first time you run the tool for a given budget.
When you are happy with the plan, re-run it with an additional
to actually create the difference and adjustment transactions.
Note that it may take a few minutes for the new transactions to show up in the YNAB app. If you're impatient to see them, reload the app and they should be there.
Set budget category for exchange rate fluctuations
The exchange rate adjustment transactions will not have a budget category set
by default, but they will have their payee set to
Exchange Rate Adjustments <CURRENCY>.
Just set the category for one of these transactions after it's
been created, and YNAB will remember that category for adjustment transactions
created in the future. You can also use YNAB's Manage Payees screen to set
or change the automatic categorization. You can also rename the payee here, if
The adjustment payee is different for each currency, so you can set different adjustment categories for each currency if you prefer.
Transfers between currencies
This tool does not create difference transactions for transfers to other accounts by default, for two important reasons:
When you transfer money to a different currency account, the exchange rate your financial institution gives you will almost certainly be different than the rate which this tool would use for automatic conversions.
The other account should only see a single transaction of the full converted amount, since that's what the real bank account it's connected to will have. A difference transaction would create a second transaction and make reconciliation difficult.
To enter a transfer to a different currency account, you must use a split transaction:
- Parent transaction:
- Outflow: amount leaving this account in its own currency
- Split 1:
- Payee: Transfer to: [the other account]
- Outflow: amount in other account's currency that your financial institution has converted to
- Split 2:
- Payee: Transfer to: [this account's currency's difference account]
- Amount: whatever YNAB tells you is left over (the difference between the amounts above)
For example, if:
- your local currency is U.S. Dollars (USD), and
- you're transferring €100 from a Euro (EUR) to a local U.S. Dollar account, and
- the exchange rate your bank gives you is €1.00 = $1.10, so
- the amount transferred to the local U.S. Dollar account will be $110, then
you would enter this split transaction in the Euro account:
Notice that you transfer the difference ($110 - €100 = 10) to the
<EUR DIFFERENCE> account. Since the amount leaving the Euro account is less than the
amount going to the U.S. Dollar account, you need to do something with the
difference, so that's where you put it.
When you run this tool, it will create an adjustment transaction in the difference account that balances the difference between the exchange rate your financial institution gave you and the rate this tool uses.
Note that if you were transferring to a currency worth more, the amount leaving the source account would be greater than the amount going to the destination account, so the difference would go on the Outflow side instead of the Inflow. You don't really need to worry about that though; just put it on the side that YNAB tells you to, and it'll all work out.
If you're transferring to another foreign currency account with a different currency, the process is the same. It doesn't matter which currency's difference account you transfer the difference to; the end result will be the same either way. If you're transferring to another foreign currency account with the same currency, just do a normal transfer (no need to create a split).
This all sounds kind of complicated, but you really don't need to worry about the details. This tool doesn't have any special logic for handling any of this, it's just a natural consequence of the approach. Just enter a split transaction like above with the amounts of currency that your financial institution tells you going out of and into each account, and whatever's left over (which YNAB tells you) to the difference account, and it'll all work out!
If you forget to make a split transaction and just do a straight transfer, it's not a big deal. This tool will end up making a big adjustment transaction, because it has to account for the full difference between the currencies, rather than just the difference between your financial institution's exchange rate and the tool's rate. There's a good chance you'll notice that and, if not, you'll definitely notice when you try to reconcile the destination account. You can just fix it then, and a new adjustment transaction that cancels out the mistake will be created automatically. Once again it'll all work out fine!
Forcing or preventing automatic conversions
If you want to force a transfer transaction to have a difference transaction
created despite the above, you can put
<CONVERT> in the memo field.
Conversely, if you don't want a non-transfer transaction to be converted, put
<NOCONVERT> in the memo field.
If there's an destination account that should always have difference
transactions created for transfers to/from it, put
<CONVERT> in the account's
name or notes. I use this for "virtual" tracking accounts that I use to track
business expenses, which are not connected to real financial institution
By default, this tool creates new transactions in an unapproved state so you
can easily check them. Once you are comfortable with how things work, you may
prefer them to be auto-approved. You can use the
arguments (or corresponding environment variables) to do so.
To see additional options, run
Save budget ID and API keys configuration
If you do not wish to pass the budget ID and API keys on the command-line every time you this tool, you can save them in a configuration file, in the "dotenv" format format.
The configuration file is named
env and is located in one of these folders,
depending on your operating system:
YNAB_ACCESS_TOKEN=<YOUR-BUDGET-ID> CURRENCY_CONVERTER_API_KEY=<CURRENCY-CONVERTER-API-KEY> YNAB_BUDGET_ID=<YOUR-BUDGET-ID>
YNAB_ACCESS_TOKEN=80ecafd5ea9678ef4fc7a75789e5f91b80ecafd5ea9678ef4fc7a75789e5f91b CURRENCY_CONVERTER_API_KEY=678ef4fc7a75789e5f91 YNAB_BUDGET_ID=f91b80ec-fd5e-9678-f4fc-a75789e5f91b
You can also use environment variables, and this tool will also read
configuration from a file named
.env in the from current and parent
This tool makes efficient use of the YNAB API, and most of the time will only
use a single delta request to poll for new transactions. As such, you can
safely run it on an automated schedule, such as every ten minutes. You can use
your operating system's scheduling facility (such as
macOS/Linux/other Un*x-like operating systems, or the Task Scheduler on
Windows), but documenting how that's done here is out of scope, so you'll have
to set that up for yourself.
To report a bug, panic, or other problem, submit an issue on the issue tracker.
This tool uses a local data file stored in your operating system's standard data folder to keep track of the budget and transactions. If you lose this data file, it's not a really big deal but it does mean the tool won't be able to update previously created transactions.
The data file is named
data.sqlite3 and is stored in one of these folders,
depending on your operating system:
The YNAB API does not provide a way for apps to delete transactions. As such,
if a foreign currency transaction is deleted, the corresponding difference
account transaction cannot be deleted. Instead the difference amount will be
0 and the memo will be set to
<DELETED>. For all intents and
purposes, this has the same end result. Feel free to delete these transactions
yourself, if you wish, but they won't hurt anything.
Exchange rates are retrieved using the Free Currency Converter API. The exchange rate for a given date will only be retrieved once, for a few reasons:
- Avoid creating more than one adjustment transaction per day due to exchange rate fluctuations
- Have all difference transactions on a given day use the same exchange rate
- YNAB only records the date of a transaction, so no way to know the specific time for the exchange rate
- Avoids over-using the free currency converter API
This does mean it's somewhat arbitrary which exchange rate you'll get for the date, but it will be accurate to within 24 hours.
Making accounts look nicer
The currency tags (e.g.
<EUR>) don't look so nice in account nicknames, and
take a lot of screen real estate, so I like to put them in the account notes
instead and then put the emoji flag of the currency's country in the account
nickname. For example, my Royal Bank of Canada chequing account has the
<CAD> in the account notes instead.
Use non-free Currency Converter API
By default, this tool uses the free Currency Converter API. While this
generally works fine, it can sometimes be unreliable and has occasional
multi-day downtimes. If you prefer to use premium, prepaid, or dedicated
Currency Converter API servers, you can register an
app and then use the
--currency-converter-base-url argument (or corresponding environment
variable) to change the API base URL:
<CUSTOM>is the custom value for your dedicated server).
You should also set the
argument (or corresponding environment variable) to the number you provisioned
when you registered your app.