my only correction to this is (I think) that when a country has higher interest rates to that of another country - say US v Aus, then the country with the higher interest rates will have an increase in demand of their currency.
for example; if the US increase their interest rates faster than Australia does then the USD will rise against the Aud. this is because the higher interest rates create a demand for the USD for those risk free returns.
still, those other points about inflation and taxes are valid.
Ann: Funds Under Management - January 2021, page-47
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