Forum Moderators: martinibuster
This is a bit of a UK centric question, I've just received my monthly payment, and from what I can tell they have used an exchange rate of $1.86 to £1.00.
I've been keeping an eye on the rates and it hasn’t been that high for weeks, I was expecting a rate of $1.80 to £1.00 this makes a difference obviously.
First of all I thought it was my bank making a few bucks off me, but when you look at your Payment Details on adsense it tells you what they are paying you in your local currency as well as the dollar.
I thought Google pays in dollars and then your bank converts it into local currency, but it seems Google is issuing it in your local currency and making a few bob off the rates.
True or False do you think?
Anyone else feeling a bit cheesed off by this?
Google pays in dollars and then your bank converts it into local currency, but it seems Google is issuing it in your local currency and making a few bob off the rates.
I have been watching Google's conversion rate game for 3+ years, and I agree that it is not obvious how they calculate the payout in local currency. But I can safely say that the conversion is not always in favor of Google. In the end, it seems to average out somehow. Some months you get less, some months you get more. (I am checking against a independent global forex site.)
Google does not cheat on you (for once).
I have assumed this is part of what they mean when they announce they are now supporting currency X - 1. they have set up to direct deposit to the banking system in that country (found a payment agent) and 2. they are now doing the currency conversion, rather than sending cheques, western union, etc in US funds.
From what I can determine, when the US people start seeing PIP (26/27th)and posting about it here, that's the day used for your rate.
I agree - the times I have tracked exchange rates, this matches what I have observed.
I've generally been fairly happy that Google's exchange rate is fairly done and its swings and roundabouts whether you win or lose.
I said
Google does their own conversion at or just before the PIP date and instructs the local company what to pay you in the local currency.
Actually, I think I want to rephrase that.
We don't know if Google tells their payment agent 'pay them $USDnnnn' or if they say 'pay them $LOCALnnnn'
Because Google shows the amount paid in local currency in the Earnings Detail page, I have assumed they do the conversion, but its possible they get feedback from their payment agents of how much ewas actually paid. After all, the local amount doesn't display until after payment is complete.
Given that we see currency screwups mostly in a single currency at a time, is it valid to assume it is the payment agent screwing up, rather than Google?
When the exchange rate error occurs in multiple countries, my memory is that they are 'close countries' (eg didn't .au and .nz get blown at the same time?) Is it possible Google is using the same payment agent in these 'close countries' and does this show where the guilt lies?
However, that the exchange calculation seems to be done at the start of the PIP period (ie around the time people start calling PIP here) would indicate that Google is doing the conversion centrally.
Interesting speculation.
(This is a bit off topic - sorry! :))
It's a good position to be in. They pay us on a certain date (for accounting purposes) - but since they hold both US and, say, Australian dollars, they can make payment in either currency - one is bound to be profitable.
In fact they could use a good cross rate, eg using Swiss Francs to pay out New Zealand dollars if it booked a profit.
Finally, each month they could hedge against all future transactions since they know the amount and exact date. At payment time they could use the hedge position if it suited them, or simply pay the cash.
The final step is to exchange their cut after local costs and Adsense payments, plus the forex profit and send that to the US.
