Friday, October 9, 2009

Cash Out Your Money In Adsense Account

Undeniably, most of the bloggers making money out of Google Adsense. The minimum cash out amount is USD 100.
Currently, there are three ways of cashing out. It will be:
1. Normal Cheque
2. Fast Cheque (express and higher cost)
3. Western Union

No matter what type of payment method you choose, the final result is to convert the USD into your home currency. For example, I myself would convert USD into Malaysia Ringgit.  The foreign exchange rate is my main concern as it determine how much I'll get from the conversion.

What is foreign exchange risk?
Foreign exchange risk occur when there is fluctuation between the exchange rate of one currency to another currency.
In simple term, it refer to the difference in amount of money you will get after exchange rate go up and down.

Withdraw Money From Adsense Account ASAP?
According to economist, Malaysia strong forex reserve and trade surplus are the fundamentals supporting the appreciation of Ringgit against USD. However, the Ringgit is 47% undervalue against USD currently (IMF). If you can recall, the ringgit hit a high of RM 3.13/ USD 1 in April last year.  Based on 8 October closing rate, the Ringgit further adjust to RM 3.39/ USD 1.

Moreover, many speculations on the Malaysian Central Bank to follow suit Australian Central Bank to lift the interest rate. So, the Ringgit is predicted to move up against several major currencies in coming weeks. Obviously USD is one of them.

If Ringgit appreciated from RM 3.39/ USD 1to RM 3.29/ USD 1 in coming weeks, you will lose the opportunity cost of RM 10 per USD 100 being converted into Ringgit.

* USD 100 X (RM 3.39 - RM 3.29) = RM 10 (Opportunity Cost)

Thus, I think its time for Malaysian Bloggers begin to minimize your foreign exchange exposure by cash out your adsense earnings. Apart from prevent loss, you can also capitalize your money in wise investment during the market recovering period.

(For those who had inadequate cash out amount or lack of investment opportunity, just hold on until the Ringgit depreciate again or the central bank to intervent. Best of luck everyone.)

~ Sadly I still didn't reach my 1st USD 100 earning in Adsense =(
~ Kindly share your comment on the MYR/USD future movement and also your recommendation on the action to be taken.


jogjashoppingcenter said...

nice tips, i like your sense to write post, read rest here

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