Dictionary of Banking Terms: middle rate
middle rate
median average of bid and offer prices quoted by foreign exchange dealers. For example, say the bid price of a given currency versus the U.S. dollar is $1 = 1.6510 and the offer price is $1 = 1.6520. Traders will say, "Can we do business in the middle?"- at $1 equal to 1.6515. ($1 = 1.6515.)
