I was wondering if any of you guys could shed some light on a scenario I have. An interest earning savings account overseas. This account is not a mutual or stock fund. Interest earned is automatically reinvested. There are some occasional deposits into this account through the year. Unfortunately from year to year the local currency fluctuates in relation to the US dollar. On average the balance in US dollars tends to go down. I am wondering how to account for the currency devaluation or even appreciation when that happens. Will that be on a year-to-year basis? Any thoughts or suggestions will be greatly appreciated.
