I’m confused in how to calculate gains in relation to the initial exchange rate. For an investment of 1000 of X currency in Y currency at the initial rate of 1X to 25Y.
Two years later Y has lost 12% of its value to X. How should return and profit be calculated?
So the investment pays me an annual dividend. Which is around 6% of the foreign currency amount. When I figure the devaluation of the currency, would I consider it a 4% profit after 2 years and maybe less next year or look at my profits in the foreign currency?