Multi-currency support in Investments tab added to the latest version (23.3.31.745)
Just keep in mind, this is not full-blown multi-currency support with automatic calculation of foreign exchange gain and loss. It’s not that I can’t do it. My first implementation was working that way and then I’ve realized it’s just too complex.
The issue is that investments would have forex gain / loss on top of market gain / loss and it seemed like too much “accounting”. So the current implementation will still track investments at cost in base currency.
What was added is ability to enter market price for investments in foreign currency.
Can someone please help me out with the following transaction:
I purchased currency RMB from PKR. I created a new account RMB & made Inter Account Transfer. Now that I sold RMB for PKR I simply created another Inter Account Transfer & entered the PKR I received. The gain is automatically reflected in my income as Foreign exchange gains (losses).
Is it the correct way to make the above transaction? If not, should I delete my old transaction & use this investment feature?
If your investment is liquid i.e. foreign denominated bank account, what you’re doing is correct and there’s no need to use investments since this will complicate things.
Your realized gains will be recognized with each Transfer and any unrealized gains will be automatically calculated provided you update your exchange rates.
In case your investment is more complex, i.e. bonds, swaps or other instruments that are not a bank account, investments would be appropriate in these cases.