Deductions & credits

I agree with this. From all articles I have seen so far including IRS publications, it is clear that the currency gain or loss should be taken when the currency disposition takes place (which is currency conversion in the case of foreign savings accounts whether it was saved in CD or just plain savings account or even given to someone as personal loan with the intention to receive interest from that person eg example 11 on page 18 in this post where X loans the amount to Y).