The chart of account and reconciliation show the amount in foreign currency. Bringing the balance of the foreign account to zero will not clear out the balance sheet amount which is showing your company accounts in native currency (CAD in my instance).
Work around is to change the foreign exchange on your last transaction of the account so as to match the native currency balance. Ex. if foreign balance of 100 USD is showing on my balance sheet as 174 CAD on my balance sheet for whatever reason, I'll change the Fx on my transaction so that both the USD balance and CAD balance are back to zero. Ex. Fx 1.74 in this instance.
You could also do it by creating two General Journal entry. One entry at a foreign exchange of 1.00 regardless of your currency pair. Then create a reversing entry but adjust the foreign exchange to remove the entire native currency outstanding balance.
