What is the mid-market rate?

The mid-market rate is the midpoint between the buy and sell prices of a currency pair in the wholesale market. It works as a neutral benchmark for judging offers, sometimes called the interbank or mid-rate. Customers usually do not receive it exactly, because exchange counters, card issuers and apps add a margin or a fee. A simple way to use it is to multiply your dollars by the reference rate, then compare the result with the yen you are actually offered; the shortfall is your cost.¹