Foreign currency is defined in s 995-1 ITAA97 as a currency other than Australian currency, digital currency or anything prescribed by the regulations (s 995-1 ITAA97). Digital currency has the same meaning as it does under the GSTA. Many transactions that affect taxpayers may occur in foreign currency. To deal with situations like these, the ITAA97 has special rules for translating foreign currency into Australian currency. The aim of these rules is to ensure that transactions that occur in foreign currency are converted into Australian dollars (‘A$’) so that a standard unit of account is used for calculating a taxpayer’s Australian income tax liabilities. It is important to be aware that transactions that occur in foreign currency can also result in taxpayers making exchange gains and exchange losses as a result of currency fluctuations. A special forex regime is contained in the ITAA97 for dealing with the tax treatment of such gains and losses.

Keynes began actively trading in currencies almost as soon as he had published The Economic Consequences. Despite the advantages of being the leading economic thinker of his generation and possessing an enviable network of contacts with policymakers, his speculation met with mixed results. This chapter examines two issues: first, the influence which Keynes’ understanding of the post-war international economic and political situation had on his foreign exchange speculation strategy; and, second, the influence his experience as a speculator had on his political-economic theory in the years following the publication of his book.

Early hopes that the economy could be revived quickly were soon dashed. T. V. Soong’s projects strained the budget as well. Japanese reparations were of little help. The foreign exchange issue remained a difficult problem

State enterprises had the upper hand over private firms. Foreign firms found it difficult to do business in China as well. Textiles did well at first but encountered supply and energy problems. Much of the cotton textile industry was controlled by the government, especially mills that had been run by the Japanese during the war and then taken over by the government. Electric-power generation has difficulty recovering. Many plants had suffered damage during the war and could not replace damaged equipment.

At the end of 1946: Had China reached a tipping point?

The year begins with emergency control policies designed to curb accelerating inflation. The government halts sale of gold. Political attacks on T. V. Soong become strong, especially in the Legislative Yuan. Soong resigned as head of the Executive Yuan in March 1947. Most of the reform policies adopted earlier in the year are then abandoned.

Political attacks on “bureaucratic capitalism” follow, with foreign businessmen joining the attack, as well as criticism of the “holy family” enterprises, those connected to the Soong and Kung families. Attacks on both accuse them of corruption, charges they try to refute.

Getting Chiang Kai-shek’s attention is a problem. Little can be done without an endorsement by Chiang. But he has little knowledge or interest in financial issues. His focus is on military matters. Foreign exchange woes worsen.

Chapter 6: 1948: The Collapse of Fabi and the Gold Yuan Disaster

Keywords: fabi, gold yuan, collapse of fabi, hyperinflation, Guangdong, Jiang Jingguo, reign of terror, collapse of the gold yuan, Soongs in exile

This book looks at the people managing sterling, the Bank of England's foreign exchange dealers. They were at the forefront of all currency crises sterling went through from 1944 to 1992.

The Verein der am Caffeehandel betheiligten Firmen, an association that grew to include all of Hamburg-based coffee traders, was established in May 1886. By 1939, the association was completely subjugated to the will of the Nazi regime, and it collapsed within the first few weeks of World War II. In the postwar period, the coffee traders of Hamburg were largely regulated by the Allied occupying forces, and this often led to undesirable circumstances, including internal competition. This chapter looks at the evolution of Hamburg coffee traders and how they functioned in the global market from the nineteenth through the late twentieth centuries. It considers the history of the Hamburg coffee traders, from the turbulent life span of the association to the challenging relationship between the Hamburg coffee traders and the Allied forces in West Germany and the global coffee moguls of the 1980s. The chapter analyzes the factors that contributed to the association’s downfall, including shifting worldviews, international market upheavals, and strong state intervention. Primary sources consulted include meeting minutes, news articles, legal documents, annual reports, and commission transactions.