Why freelancers in the Philippines struggle with foreign currency access

From virtual assistants and content writers to software developers and digital marketers, freelancers in the Philippines have built a strong reputation for quality work. However, despite the rapid growth of freelancing in the Philippines, a lingering challenge has been access to foreign currency. This article highlights these challenges and helps Filipino freelancers find efficient solutions. Here are the most common reasons Filipinos struggle to access foreign currency,

Also read: Best platforms to earn US dollars in the Philippines

How inefficient banking and payment systems affect foreign currency access

Some of the biggest challenges for freelancers come from the traditional financial systems they are familiar with.

• Poor exchange rates: Local banks often use unfavourable exchange rates with hidden markups when converting foreign currency to Philippine Pesos (PHP). A freelancer earning a steady monthly income could lose a lot of money each year due to these unfavourable rates.
• High transaction fees: In addition to unfavourable exchange rates, traditional banks and popular platforms like PayPal charge high fees for international transfers. These fees can include fixed costs and percentage deductions.
• Delayed processing times: Regular international bank transfers can take several business days to arrive in a local bank account. These delays create uncertainty and disrupt your cash flow.
• Withdrawal limitations: Some platforms may impose withdrawal limits, making it harder for freelancers to access their full funds when needed.
• Missed timing for conversion: Unlike with multi-currency accounts like Grey, where you can receive money in foreign currencies and convert at will, traditional methods don’t allow this. Freelancers can’t time their conversion and take advantage of more favourable exchange rates. The conversion is often immediate upon receipt, leaving you with no choice.

Also read: How to manage multiple currencies as an expatriate in the Philippines using Grey

Grey: A modern solution to a modern problem

As freelancing continues to reshape the work structure in the Philippines, new challenges are bound to arise. Managing international payments in foreign currencies is one of those challenges that require modern solutions. Grey provides freelancers with virtual US, UK, and EU bank accounts, allowing them to receive payments like a local without requiring conversion fees. Users can receive funds from foreign clients in foreign currencies while in the Philippines. Grey also offers faster processing times and transparent, mid-market exchange rates, ensuring freelancers receive the best possible conversion value when converting or withdrawing funds into their local bank accounts.

Sign up on Grey today to manage international payments with ease.

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