tcaldara
Member

Exchange rate is not properly updated?

I have noticed the exchange rate for conversions to local currency is very innacurate and sometimes takes away much more than it should.

 

For example, my local currency ARS is almost hitting 40 ARS/1 USD today at the official rates (30/08/2018) but the exchange rate on Upwork is showing 29.44 ARS/1 USD (30/08/2018 at 19:00 p.m.), which is a massive difference.

 

I was wondering if someone could shed some light on this. Otherwise, I'll need to consider another option to retrieve my earnings.

 

Thanks.

 

ACCEPTED SOLUTION


@Prashant P wrote:

Easy solution.  Go to your bank and ask them you want to buy USD and ask  how much you would have to pay in your local currency.


 No. Exactly the opposite.

 

It should be "Go to your bank and tell them you want to SELL them some Dollars and ask them how much they'll give you for them."

View solution in original post

23 REPLIES 23
aocumen
Moderator
Moderator

Hi Tomas, 

 

Please know that the difference in exchange rates is not something Upwork can control. When a bank converts a transaction, they will mark up the interbank rate to buy or sell a currency. Online calculators will not take into consideration the mark up that is applied. Since rates constantly change throughout any given day, the rate you received is the rate offered by our bank at the time your specific transaction was processed.


~ Avery
Upwork

Hi Avery,

 

Thanks for your reply. I understand the issue.

 

So in this case, since the transaction has not been processed yet (or at least I haven't received any notifications about it), it should be applying the current (or the one at the time it processes) rate instead of what Upwork was calculating once I requested my withdrawal. Is that correct?

Hi! I have the same doubt. I wanted to retrieve some money but I saw the exchange rate and it was ridiculous, so I decided to wait. If you already asked for the payment, could you please share what rate you got?

Sabrina,

 

When I requested the withdrawal I think it was around 28,50 or something, but it hasn't processed yet so I don't know which rate they are going to use. Hopefully it will be much higher than that. I'll let you know once the payment goes through.


@Sabrina I wrote:

If you already asked for the payment, could you please share what rate you got?


I have received the payment today, and it seems it has been processed rather quickly because I got it at an exchange rate of 29.19 ARS / 1 USD. Maybe you will be luckier if you try today or during the following days, lol.

 

Regards,

Tomas

Wow Tomás! That was low for the current exchange rate. When have you asked the money to Upwork?

 

 

Thanks in advance for the information. 

 


@Sabrina I wrote:

If you already asked for the payment, could you please share what rate you got?


I have received the payment today and it seems it has been processed 'pretty fast', because I got it for an exchange rate of 29.19 ARS / 1 USD. Maybe you will be luckier if you try to withdraw today or during the following days, lol.

 

Regards,
Tomas

Hi Tomas, 

 

Since exchange rates fluctuate during the day, this means the rate applied to your withdrawal depends on when we executed the transaction. Please keep in mind that the displayed exchange rate reflects the last exchange rate used by Upwork to convert USD to your currency. The actual rate used for each local currency transfer is available on the next business day when we process your transaction.


~ Avery
Upwork

Avery,

 

I am still a bit confused about the following: 

 

29.4417 ARS/USD (As of Aug 30, 2018 23:30 -0300)

"As of August 30, 23:30"  (today)

 

Yet Bloomberg has been displaying rates well above 33 ARS / 1 US during the whole day: https://www.bloomberg.com/quote/USDARS:CUR

 

Could you please clarify this?

Thank you for your time

 


@Avery O wrote:

Please keep in mind that the displayed exchange rate reflects the last exchange rate used by Upwork to convert USD to your currency. The actual rate used for each local currency transfer is available on the next business day when we process your transaction.


 


@Tomás C wrote:

Avery,

 

I am still a bit confused about the following: 

 

29.4417 ARS/USD (As of Aug 30, 2018 23:30 -0300)

"As of August 30, 23:30"  (today)

 

Yet Bloomberg has been displaying rates well above 33 ARS / 1 US during the whole day: https://www.bloomberg.com/quote/USDARS:CUR



 Bloomberg reports the mid market rate. That is ****NOT**** (obviously) the rate available to retail customers.

 

Banks are not charities and do not sell currencies at the same price they buy them at any more than your local supermarket sells you your pasta at the same price they buy it at.

 

Upwork does not set the rate, the banks do (which, as above, don't work for free any more than you do)

 

It is fair to say, however, that Upwork's banking partners do not offer very favourable rates compared to other solutions.

 

Hi Petra,

 

Agreed, Bloomberg was not a good example. Do you know of any public sites that report banking rates similar to what Upwork is calculating?

 


@Petra R wrote:

It is fair to say, however, that Upwork's banking partners do not offer very favourable rates compared to other solutions.

  

Agreed as well. The national bank of Argentina (bna.com.ar) is showing a buy rate of 37.00, which clearly doesn't include interbanking commissions, but I still feel freelancers should be getting a number closer to that rather than having such a big disparity.

 

Thanks,

Tomas

Easy solution.  Go to your bank and ask them you want to buy USD and ask  how much you would have to pay in your local currency.


@Prashant P wrote:

Easy solution.  Go to your bank and ask them you want to buy USD and ask  how much you would have to pay in your local currency.


 No. Exactly the opposite.

 

It should be "Go to your bank and tell them you want to SELL them some Dollars and ask them how much they'll give you for them."

Exactly, and they'll set a rate about AR$37 for each dollar. I understand the business aspect of this, but I was expecting more favourable rates for freelancers 🙂

 


@Tomás C wrote:

Exactly, and they'll set a rate about AR$37 for each dollar.

I was expecting more favourable rates for freelancers 🙂

 


Your currency is insane  😮  

 

volatile much.jpg

 

It is also entiely impossible that your bank gives you MORE than the mid market rate for the Dollar. That just does not happen. EVER.

 

They charge you ABOVE the mid market rate for the Dollar.

and

They pay you BELOW the mid market rate for the Dollar.

 

And I am really puzzled why you think freelancers should get a better exchange rate from banks than, say, shoe-shops, deep sea divers or heart surgeons...

 

 

 

Our currency is insane, can't argue with that Smiley LOL

 

When I mentioned 'better rates for freelancers'. I was never expecting to receive more than the mid-market rate. I was actually expecting to receive a rate closer to the official buy rate.

But it was probably a misunderstanding from my part about how Upwork updates the rates. For example, if I check the Upwork rate now, it is 34,49. Which is much more reasonable and closer to the official buy rate of 36,2.

 

A good way around this would be withdrawing directly USD and sell here at official rates, but since the international transfer fee is about -30US it's wise to gather a good amount and do less transactions.

 

To be honest, I was a bit concerned since I requested a withdrawal right before the currency peaked, lol. Oh well Smiley Happy thank you for your understanding.

 

Best,

Tomas

 

 

 


I never stated that, and I hope my previous answer clarifies this. The current Upwork rate being almost 35 is pretty much what I was expecting.


@Petra R wrote:

And I am really puzzled why you think freelancers should get a better exchange rate from banks than, say, shoe-shops, deep sea divers or heart surgeons... 

 

 

 

I have exactly the same problem. I changed money on the 31/8. The dollar was 37 ARS. I am used to get a smaller exchange rate than published online but I think the exchange rate I got is outragerous. I only got an exchange rate of 29.44 ARS I think it is really unfair. As well as it being really unfair on Upwork side not to show actual exchange rates. At least show when was the last transaction they are showing. I got robbed of the 20% of my payment by Upwork bank exchange rate. I made a complain but I know it wont lead anywhere.

It seems to take a few days during fluctuations to show an updated rate. Which rate was it displaying (on this platform) once you requested your conversion?

I feel as though the Upwork rate has a slight stealth tax to it. For example the exchange rate for me fluctuates between 0.78 and 0.76 but no matter what the rate is Upwork always offer me 0.748. At 0.76 I don't think that is too bad, but at 0.78 I feel like I am not getting the benefit of the improved rate. A 2% increase should at least give me a 1% increase at my end, but it doesn't seem to.

Hi Will,

 

Difference in exchange rates is not something Upwork can control. When a bank converts a transaction, they will mark up the interbank rate to buy or sell a currency. Online calculators will not take into consideration the mark up that is applied. Since rates constantly change throughout any given day, the rate you received is the rate offered by our bank at the time your specific transaction was processed.

Thank you.

~ Goran
Upwork

Yeah, it is really bad.

 

For example, today I received a withdrawal and they ended up using a 30,40 ARS / 1 USD rate for the conversion.

When the official rates are quite higher:

1/11/2018 Compra Venta

Dolar U.S.A34,800036,6000


Even when taking into consideration the international bank fees, 30,40 to 34,80 is a huge difference.


Tomás C wrote: 

For example, today I received a withdrawal and they ended up using a 30,40 ARS / 1 USD rate for the conversion.


 
I take that back, after a few hours I received another transaction with the remaining amount in ARS.

So for the whole amount the exchange rate did actually end up being 34,48 ARS / 1 USD. Which is very good!