When making a transfer between accounts in different currencies MoneyWiz allows setting exchange rate that is different from the median forex rate. Setting such rate though leads to some complications. For example, if affects the net worth and the cash flow reports. Let’s use an example - todays USD/EUR rate is 0.9. Meaning that spending 1 USD will buy 0.9 EUR.
If we make a transfer for 10 USD that turns into 9 EUR.
This obviously doesn’t produce any change in the Net Worth:
But, if, on the other hand, we make a transfer for 10 USD that turns into 1 EUR, effectively changing the exchange rate to 0.1:
the loss from this disadvantageous exchange needs to be accounted for:
The Net Worth indicator accounts this forex loss right away.
The Cashflow report makes the exact same calculation and adds the losses to the expenses bar in the relevant period.
A similar calculation would be if we made a transfer with a much favorable exchange rate than the forex rate. For example, if we find a way to buy 10 EUR spending 1 USD, this will be considered a forex gain. It will increase the Net Worth and the calculated amount will be added to the incomes bar of the Cashflow report.