Can I withdraw money from my account to a US$ bank account held with a local bank in UAE?

[Deeps9]

Can I withdraw money in US$ from my paypal account to a US$ bank account held with a local bank in UAE?

We receive payments in UAE Dirhams on our website. This amount is converted to US$ in our paypal account. Normally, we withdraw the money from paypal to our UAE Dirhams bank account. However, this ensures that the funds are converted twice, once while receiving and 2nd time while withdrawing. So we want to withdraw the funds directly to our US$  bank account in a UAE bank. Is this possible?

[Deeps9]

2. What type of bank account do I need to have in order to link to my PayPal account? 

You can link any local bank accounts which accepts local currency. 

Please note that you will still be able to link your bank account in non-local currencies. However this option is not recommended. If the withdrawal is made in local currency, then your local bank will convert the funds back to the foreign currency of your bank account. 

What does the above help question / answer mean? Can I withdraw US$ from my paypal account to a US$ account held with a local bank in UAE? Or does withdrawal have to be only to a UAE Dirham bank account? Please clarify.

[PayPal_JonK]

Hello @Deeps9, 

Welcome to the PayPal Community! I'm sorry to hear you've been running into some difficulty with some recent transfers to your bank. The currency that is received into your bank normally depends on the bank itself. If it is a bank physically based in the US, the funds would be received in USD. If it is a local bank in UAE, the funds would be received in your local currency. 

If you have a US bank account, here's how to add it: How do I add a U.S. bank account to my PayPal account?
 

I hope that helps!

 - Jon K

[Deeps9]

Dear @PayPal_JonK 

Thank you for your reply. I wanted to clarify my query.

Other than local currency AED account, in UAE local banks we can also have foreign currency accounts such as USD and many others. So I have two separate accounts in a local UAE bank, one is a AED account and the 2nd is a USD account. I have linked both bank accounts to my Paypal account. However, since it is a UAE based bank, Paypal automatically assigns both accounts as local currency accounts. Paypal does not give us an option to transfer in USD to a local UAE bank account. As you mentioned, USD transfer is available only for banks physically based in the US. Paypal should look into this matter and allow transfer of funds in currency of bank account irrespective of the location of bank. Is this possible? Please comment.

[PayPal_Bindu]

Hey @Deeps9,

I do understand your concern here! When you withdraw money from your PayPal account, it’s automatically converted to the primary currency of the country which your PayPal account is registered to. Even though your bank allows two currencies, you will receive the transfer in your local currency. You can only receive funds in USD to an actual U.S bank account. 

Have a great day!

Bindu

[Deeps9]

Hi @PayPal_Bindu & @PayPal_JonK 

Thank you for your replies.

Why does PayPal automatically convert to primary currency of country where our account is registered? Is this a local banking regulation or does PayPal decide this? Since the funds in our PayPal account are in USD, isn't it better for us to be able to choose the withdrawal currency to any bank? UAE local banks are allowed to receive and transfer funds in USD if the bank account is in USD. Can PayPal address this issue?