I exchanged US dollars for this foreign currency when it was real low. now it's exchange rates is much higher.
International Law Attorney
Yes, you are. Please talk to an international attorney for this. Best
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The short answer is yes.
You bought the currency when the exchange rates were low (meaning you got a lot of foreign currency for $25,000). Now the rates have changed, so you would get more than $25,000 if you converted the foreign currency back to dollars.
This means you would have a gain and would have to pay taxes on the gain (once it happens, assuming you are a cash basis taxpayer).
Speak to your accountant.
I am admitted to practice in Connecticut and limit my responses to CT law.
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