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b27ba323
Member

Local currency conversion rate decreasing continously

Hello everyone. I work from Bangladesh. I have been here since mid 2014. I always withdrawed my money through local bank transfer and it works good too. But only problem is the USD to BDT(Bangladeshi currency) conversoin rate is quite low than market rate.

 

For example, when conversion rate is 1 USD= 78.4 BDT on google, Upwork shows last day's conversion rate at like 74+ BDT. Now I understand bank conversion are done in lower rates than usual but this is way too much difference. 

 

Another point, in 2014 Upwork's conversion rate was 75+ BDT(close to 76BDT). And as time went by it slowly decresed to current rate of 74.2BDT as of April 30th 2016 rate.

 

So if I withdraw like $3000 even at 2 BDt difference I lose 6000BDT which is equivalent of $81. That's a big hit and price of another job. Not cheap.

 

Support says they can do nothing about this. I want to hear from others out here facing this toruble. What alternative method can we have besides this.

15 REPLIES 15
odrissho
Member

Yes, we  are facing this problem, we are watching two different conversion rate. Upwork answer is they don't set our currecy conversation rate, our local bank does. but is it really the reality?? nobody knows....

Actually not our local banks. The conversion is done by Upwork's bank whom they have account with. So they conver the money to BDT first and than send it.

 

I am wondering if payoneer is a good alternative. I would rellay like to hear user's experience here with payoneer.

Nope. Payoneer conversion rate is too much difference.

From Upwork to Payoneer we have to loss $2.

Payoneer charges $ 2.50 for immediate load.

For each and every single withdrawal from Payoneer card, we have to spend atleast $2.50 ~ $3.

After this the difference in currency conversion is about 6 to 8%.

I see. So Payoneer isn't efficient either. We don't have Paypal in Bangladesh yet. have you everused Paypal for withdraws?

Paypal is a disaster too.

They do charge around 4% of the withdrawal amount and also their currency conversion rate sucks.

I dont know whether Paypal still got Mass Payments system or not. If it still there, why didnt Upwork make the payments through their mass payment option? In that case they do charge only $ 1 per withdrawal.
turbocro
Member

Maybe I'm missing something but what is stopping you from increasing your rate to clients to cover currency  loss?

You are now at $8 just jump it to $9 and you are all set to go...

 

Smiley Wink haha,  kind of solution! but there are still some problem..

 

1. when you will make $ 9 instead of $ 8 ; there will be more earning then before. More earning = More money you are losing into Conversion Rate! Smiley Sad

 

2. Going fine with $ 8, IF He make $ 9, May be he is going to loose some clients! ( not sure so may be)

 

So, Ultimately this is not the solution. But thanks for your approach!

$8 is just a show off on my profile. I only got a small work for $8 and it was for only 2 hours. I am from South Asia, so clients look to pay less and save money. Most of the time rates are like $4-$5 per hour and getting jobs is getting harder day by day. Sothere isn't much chance to increase rates.

turbocro
Member

Let me reply to both of you...

 

First of all, you are freelancer geeting paid, so you are not loosing any money on conversion, Upwork will not change it rate for you two...

 

You just need to consider this as business expense.. So if you want to  earn $100, and it cost you $30 to get that money you need to charge client $130, there in no other magic than that...

 

Second, you hourly rate is not limited by your location, you are on global market and act like that.. 

I hate it when my local currency strengthens against the dollar...I earn less. So I keep an eye on things.  It isn't Upwork's fault that global markets fluctuate. Banks seldom have the same conversion rates from day to day, nevermind week to week! Blaming Upwork for that is, in my opinion, not on. They are a business. Conversion rates have absolutely nothing to do with them.

Have you ever since conversion rates against USD rising again after getting low first?

 

What if conversion rates keeps getting lower in next 1 year and it becomes too major difference?

Exchange rates can fluctuate wildly over time.

 

You need to keep an eye on them, they go up and down and you need to be ready to react accordingly by keeping yourself informed.

 

The value of a currency can half if things go sufficiently badly wrong with a country's economy.

 

Take a look at what happened between the US Dollar and the Euro over a 10 year period:

 

10 year Euro Dollar graph.jpg

dragan74
Member

Try changing the bank. I know in Serbia not all banks have the same rate. I believe it really is up to a bank.

 

I am more concerned with dollar weakening... I need it to be strong ๐Ÿ˜„

Western Union is a best option as they provide better rates than even our local banks but as much I know Upwork for some reason don't provide this option.

And we don't know what arrangement they have with there partner banks.
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Yes I think so too. If only Upwork would consider adding it. It would be much helpful for freelancers in South Asia who are a big part of Upwork.