@ThomasM125 while I generally agree with your observations of section 988 applicability, a savings account / CD is a personal asset -- it is not generally given capital treatment, never mind the return rate. The 1098-INT regime does not distinguish between savings interest earned in the USA vs abroad. Therefore currency loss cannot be claimed as capital loss. It may qualify for casualty loss treatment if itemized deduction is used. Also as an individual one cannot use the operating currency rules/benefits either. That is my position .
