Currently you receive payments for your freelancer invoices only in US$ from Kolabtree via Payoneer. Payoneer remits US$ to your bank account and conversion into local currency is done by your banker with the applicable charges which could range between 2.5% and 4.5% depending on your bank and your country.
With the new local currency option, Kolabtree will pay you in US$ and Payoneer will convert it to your preferred local currency (which you will select while editing your preferred payment option) at a fixed rate of 2% of the transfer amount and credit the local currency (using the midmarket conversion rate) directly to your bank account. Mid-Market rate is taken from Reuters/Bloomberg exactly at the moment that Kolabtree processes the payout.
Also by selecting the local currency option, you can eliminate the intermediary bank charges and other wire landing charges which may be applicable to you in the current set up of transferring money in US$ only.