Mid-Market Exchange Rate
The Mid-Market Exchange Rate is the currency exchange rate that banks use when transferring money with each other. Every currency pair has a different standard exchange rate, which is driven by worldwide and regional economic factors.
For example, there will be a mid-market exchange rate between the US dollar and the Euro, which will fluctuate according to imports, exports, trade agreements, economic conditions and other trends. The mid-market exchange rate is equivalent to the midpoint between the buying and the selling prices of the two currencies.
Ideally, you will want to find a currency exchange provider who transfers money between currencies as close to the mid-market exchange rate as possible. Since most currency providers and banks make money from the difference between the mid-market exchange rate and what they charge (known as the spread), the closer you are to this exchange rate, the more money the beneficiary will receive.
Mid-market Exchange Rate — Related terms
Mid-market Exchange Rate is a term with many synonyms. Interbank exchange rate and standard exchange rate are also commonly used.
Money Transfer Glossary
When it comes to exchanging money, paying for your transfer, understanding exchange rates and more, it’s important to understand what all the details mean. But don't worry. We’ve got you covered with our complete Monito glossary and guide to the most frequent terms you’ll come across when you send or receive money internationally.