Mid-market rate vs bank rate:
what is the difference?
The mid-market rate is the midpoint between a currency's buying and selling prices in the wholesale market. A bank rate is the rate your bank converts at: the mid-market rate less a margin it keeps, plus any transfer fee. On 11 Nov 2026 the ECB reference rate was NZ$1 = US$0.5584; a bank's quote would be lower.
What is the mid-market rate?
Banks and dealers quote two prices for every currency: one to buy it and one to sell it. The mid-market rate sits halfway between them. It moves all day while markets trade, which is why two websites can show slightly different figures at the same moment.
NZD Forecast uses the European Central Bank's euro reference rates, published once each working day and converted to NZ dollar crosses. On 11 Nov 2026 they gave:
- 0.5584US dollars per NZ$1
- 0.8140Australian dollars per NZ$1
- 0.4196British pounds per NZ$1
- 52.31Indian rupees per NZ$1
How we source and date these is on the methodology page.
What is a bank's exchange rate?
A bank's exchange rate is the price at which it sells you a foreign currency for your NZ dollars. It is below the mid-market rate, and the gap is the bank's margin. The margin is a cost on top of any transfer fee, and the fee table won't show it.
None of the five big NZ banks' fee pages or brochures we read on 10 Nov 2026 states the size of its margin. BNZ's page says only that it "includes a margin on foreign exchange conversions".
How do you work out the margin on a quote?
- Get the quoted rate. If the quote shows only amounts, divide what the recipient gets by the NZ dollars converted (leave the fee out).
- Check the mid-market rate at the same time. A rate from yesterday or this morning can be out by more than the margin.
- Work out the gap. Margin % = (mid-market rate − quoted rate) ÷ mid-market rate × 100.
- Add the fee. The total cost is the margin in NZ dollars plus the transfer fee, plus any overseas bank charges.
A worked example, using round illustrative numbers rather than any provider's rate:
| Converting NZ$5,000 | Rate | US dollars received |
|---|---|---|
| At the mid-market rate | 0.5600 | US$2,800.00 |
| At a quoted rate | 0.5450 | US$2,725.00 |
| Difference (the margin) | 2.7% | US$75.00 (about NZ$133.93) |
Illustrative figures only. Real margins vary by provider, currency, amount and channel.
When does the margin matter most?
On large amounts. A margin is a percentage, so it grows with the amount, while a transfer fee is usually flat. At the 2.7% margin in the example, sending NZ$500 costs about NZ$13.39 in margin, and NZ$20,000 costs about NZ$535.71. Some providers price for this: OFX charged no transfer fee from NZ$10,000 when we checked on 10 Nov 2026, and Wise offered a fee discount on transfers over NZ$44,000.
For small amounts, a flat fee can cost more than the margin. Compare the amount that arrives, fee included, not the fee or the rate alone. The send money overseas page has each provider's fees.
What do NZ banks and transfer services say about their exchange rates?
Each provider's own page or fee brochure described its exchange rate like this when we read it on 10 Nov 2026:
| Provider | What it says about its rate |
|---|---|
| ANZ →Bank fee page | ANZ converts at its own exchange rate; the page does not state the margin |
| BNZ →Bank fee page | "BNZ includes a margin on foreign exchange conversions"; the size is not stated |
| ASB →ASB Guide to fees, 15 Sep 2026 | The fee guide does not state ASB's exchange-rate margin |
| Westpac →Westpac personal fees, effective 10 Nov 2026 | The fee brochure does not state Westpac's exchange-rate margin |
| Kiwibank →Kiwibank Fees & Limits, effective 14 May 2026 | The brochure does not state Kiwibank's exchange-rate margin |
| Wise →Provider page | Wise says it uses the mid-market rate, with a fee discount on transfers over NZ$44,000 |
| Remitly →Provider page | Remitly quotes its own rate; new customers get a better rate or no fee on their first transfer |
| OFX →Provider page | OFX says its rate is the market rate plus its margin, shown before you confirm; new customers get an introductory rate on a first online transfer |
| Western Union →Provider page | Western Union quotes its own exchange rate in its converter |
This guide explains how exchange-rate quotes work. It doesn't recommend a provider, and the mid-market rates on NZD Forecast aren't a rate you can deal at. For timing, see the best day to send money overseas; more in NZ dollar guides.
FAQ
What else do people ask about mid-market and bank rates?
Straight answers, with the source and date for every figure.
Can I get the mid-market rate from a NZ bank?
Not on a normal transfer. ANZ, ASB, BNZ, Kiwibank and Westpac convert at their own rates, and none of their fee pages or brochures we read on 10 Nov 2026 states the size of the margin. Of the transfer services we checked, Wise says it uses the mid-market rate and charges a separate percentage fee.
Is the mid-market rate the same as the interbank rate?
The two terms are often used for the same idea: the midpoint between the prices at which currency is bought and sold in the wholesale market. Personal customers can't deal at that price directly. NZD Forecast shows European Central Bank reference rates, which are set once a day, so we call them mid-market reference rates, not live rates.
How much margin do NZ banks charge on foreign exchange?
They don't publish it. BNZ's fee page says it "includes a margin on foreign exchange conversions" without giving the size, and the ANZ, ASB, Kiwibank and Westpac documents we read on 10 Nov 2026 don't state one either. You can work it out yourself: subtract the bank's rate from the mid-market rate at the same time, then divide by the mid-market rate.